Home / Blog / Category / Fundamental Analysis / GBP/USD Gears Up for Volatile Week: Focus on UK Data and Fed Meeting
10 June 2024 | FXGT.com

GBP/USD Gears Up for Volatile Week: Focus on UK Data and Fed Meeting

GBP/USD Under Pressure as US Dollar Dominates Sentiment: GBP/USD struggles to recover above $1.2720 in Monday’s early European session, starting off the week in negative territory. The stronger US Dollar is applying downward pressure on the major pair.

US Nonfarm Payrolls Impact: Following the stronger-than-expected May payrolls report, the probability of a Fed policy rate cut in September has fallen from 80% to 50%, pushing expectations towards a December cut. The data, showing 272,000 new jobs and accelerating wage growth, triggered a significant rally in the US Dollar, reflecting the market’s anticipation of prolonged higher interest rates.

Bank of England’s Policy Outlook: The Bank of England (BoE) is expected to keep its interest rate at 5.25% during its June 20th meeting. This decision comes despite slightly lower but still high inflation levels. The upcoming general election in early July adds to the economic unpredictability, impacting market sentiment.

Upcoming UK Economic Data: The Office for National Statistics (ONS) is set to release several important reports this week, including jobs data, monthly GDP figures, industrial production, construction output, and trade balance data.

Upcoming UK Employment Data: Investors will focus on the UK Employment data due on Tuesday, which includes Claimant Count Change, Employment Change, and Average Earnings data. Any signs of weakening labour data or rising unemployment in the UK could lead to expectations of early rate cuts by the Bank of England, potentially adding further weakness to the Pound Sterling.

Upcoming US CPI and Fed Meeting: The US CPI figures for May are due on Wednesday, just before the Fed concludes its two-day policy meeting. Market participants will closely watch the CPI data and the Fed’s updated economic projections and dot plot, both of which are crucial for future USD movement.

Help us improve this article.
Disclaimer: Any material and information included herein are intended for general marketing purposes only and does not constitute investment advice or recommendation nor an invitation to acquire any financial instrument and/or be involved in any financial transaction. The investor is solely responsible for the risk of his investment decisions and if considers appropriate, he should seek relevant independent professional advice before making any decision. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. Please read full Non-Independent Investment Research Disclaimer here. Risk Disclosure: CFDs are complex instruments and carry a high level of risk of losing money. Read full Risk Disclosure here .

Blog Search

Categories

Blog Categories

Tag

Blog Tags

Register and Share Buttons EN

Register

Loved our latest article?

Share it with your friends and followers!

Copied to clipboard
To top

Leveraged products may not be suitable for everyone and may result in loss of all your capital. Please ensure you fully understand the risks involved and whether trading is appropriate for you. Read Full Risk Disclosure here.