The GBP/USD currency cross maintained a defensive posture on Wednesday, trading around the 1.3400 level during European trading hours. All traders will be closely watching this level. They expect some important economic data from the U.S. that would affect the pairs’ fortunes going forward.
As the day wears on, GBP/USD is still on the defensive, mirroring a longer-term tone of trepidation among traders. The pair’s performance appears to lack momentum, primarily due to the anticipation surrounding significant US data releases, including jobs figures, GDP statistics, and PCE inflation metrics.
Market analysts note that upcoming reports are likely to prevent GBP/USD from appreciating beyond this point. They argue the data might limit the currency pair’s upside potential. US jobs data really takes the spotlight as it serves to be the most important economic indicator. These deeply logics can themselves profoundly shape currency values.
The same goes for the release of US GDP data, which holds impressive incremental power over market expectations. Producers, consumers, and investors all anxiously watch this marker to help decipher the prevailing economic winds. They further evaluate its effect on Federal Reserve monetary policy decision-making.
Besides the actual jobs and GDP figures, the monthly PCE inflation data is the next big-market-moving indicator that’s coming up that can swing GBP/USD significantly. Inflation continues to be a top worry for the public and lawmakers alike. Any surprises noted in this report may spark a new wave of volatility across the currency markets.
In light of consideration of all of the above, analysts highly on GBP/USD’s near-term prospects. The overall mood suggests that the duo may find it hard to trade above the 1.3400 handle. This is all particularly the case short of some major surprises in the next few data releases.