The GBP/USD currency pair is exchanging hands around 1.3400 amid the European trading hours on Wednesday. Traders are looking forward to seeing fresh market moving economic data, particularly from the U.S. These updates will serve to move the needle when it comes to market dynamics for the currency pair.
Even as GBP/USD bounces with the latest market activity, the GBP/USD price reflects a risk-averse tone among traders. The duo’s choreography suggests the limits that are closing in on them. With critical economic indicators such as the US jobs data, GDP data, and PCE inflation data looming large, there is cause for caution. Traders are understandably hand wringing about the next 2 reports. These reports would provide key information not just about the future course of monetary policy, but about the state of the US economic recovery.
According to market analysts, the currency pair shows signs of strength near the 1.3400 handle. Nonetheless, any upward moves will find it difficult thanks to some key data releases coming up. Traders are obviously on the edge of their seats with all the hype about these reports. Others are taking a more go-slow approach and look at their options stately before making any firm commitments.
The next US jobs report, due out soon, is especially important. This analysis will uncover important employment trends and state economic performance. These insights will help inform the Federal Reserve’s forthcoming monetary policy decisions. No doubt, the comprehensive GDP data paints the most complete picture of where economic growth is occurring. In the meantime, the PCE inflation data is key to understanding inflationary pressures in our economy.