GBPUSD Exchange Rate Has Support In Play With Inflation

GBPUSD was lower on Tuesday after weaker-than-expected jobs data.

GBPUSD-–-Daily-ChartGBPUSD – Daily Chart

GBPUSD has lost some serious ground since last week and could see a test of support at the 1.2373 level soon.

The UK witnessed an alarming unemployment surge, surpassing City economists’ expectations. This unexpected rise has raised concerns about employers resorting to staff cuts in response to higher interest rates. The Office for National Statistics reported a sharp increase in the unemployment rate to 4.2% in February from 3.9%, a figure significantly higher than the anticipated 4%.

The UK is bracing for Wednesday’s release of inflation numbers. This crucial event could further weaken the pound, especially after Federal Reserve comments.

Hawkish Fed comments pushed bond yields higher on Tuesday and weighed on stocks. Fed Vice Chair Jefferson said, “If incoming data suggest that inflation is more persistent than I currently expect it to be, it will be appropriate to hold in place the current restrictive stance of policy for longer.” That came after San Francisco Fed President Daly said on Monday that there’s “no urgency” for the Fed to adjust interest rates. She said, “The labour market’s not giving us any indication it’s faltering, and inflation is still above our target, and we need to be confident it is on a path to come down to our target before we would feel the need to react.”

With markets now looking at higher rates for longer in the US, the UK is getting its inflation numbers down. However, deflationary trends and a weaker economy and job market could help.

Recent News
Start Trading Now !

Try our demo account for free to learn trading. When you’re ready, switch to a live account and start trading for real.

Popular posts
ATFX

Restrictions on Use

Products and Services on this website are not available for Hong Kong investors and not related to any corporation licensed by the Securities and Futures Commission in Hong Kong.

All the information and materials posted on this website should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制:本網站的產品及服務不適用於香港投資者及與任何香港證監會持牌公司無關。

網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://atfxconnect.com