Popular currency pair GBP/USD is still hanging in more strongly than anticipated. It has stayed in the green mode above 1.3400 level since the start of the Wednesday Asian trading day. According to the most recent reporting, it’s on the backfoot again, trading around 1.3405 and indicating tepid bullishness that currency traders are watching closely. Worse-than-expected economic data out of the United States has led to a pullback in the Greenback. Consequently, the British Pound has become more valuable against it.
New US economic data came in well below expectations across the board this week. That has fueled fears regarding the Greenback’s high tide. The changing tide in market sentiment has propelled the GBP/USD cross higher. Traders are now watching it more closely for key economic releases expected later today.
One of the most important datasets market participants are paying close attention to is the US ADP Employment Change data. Forthcoming on Wednesday, this vital report will show the way. This information is important for tracking the overall trends of employment and may provide context that affects Federal Reserve policy-making discussions. The PCE Inflation Index, or Personal Consumption Expenditures Price Index, will provide the first indications of inflationary pressures. Meanwhile, the Flash Q1 Gross Domestic Product report would provide us a first look at our overall economic growth for the first quarter.
Together these reports could have a very powerful effect on the USD’s path and therefore on the GBP/USD currency pair. Indeed, analysts are on the lookout for surprises in these releases, all with an eye on potentially heightened volatility in the currency markets.
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Traders remain vigilant as they await these critical economic indicators, which could shape market dynamics for the rest of the week. The GBP/USD pair today is benefiting from a weaker US dollar. Curious eyes will be watching how the currency holds up going forward on the data.