- GBP/USD trading without a firm direction.
- UK’s June labour-market data showed mixed results.
- GDP figures, Industrial Production, due on Wednesday, will be in focus
The Sterling was trading near 1.3070 against the dollar after June economic data earlier today.
Dollar Weakness Helps Cable
GBP/USD slipped to 1.3070 after briefly testing around 1.3100 in the early trade, failing to extend the positive note at the start of the week.
The earlier up-move got faded – after the unemployment rate came out unchanged at 3.9 Percent, the Claimant Count Change spiked by more than 94k and a contraction of 1.2 Percent in Average Earnings plus Bonus, all in June.
The present weakness in the dollar and a pro-risk mood in the global markets are underpinning GBP/USD and are helping it to sidestep concerns regarding the pandemic and progress in the UK-EU trade negotiations.
Today, the NIESR GDP Estimate is due amidst a comparatively light docket compared to Wednesday – when UK GDP figures, Industrial Production and Trade Balance results are expected.
Up-move hinges on Domestic Factors
GBP/USD is now in a consolidation phase after touching recent highs of 1.32 last week. The July-August rally in the pair was on account of the dollar weakness, but further up-move depends on the more domestic drivers including the BOE monetary stance, handling of Coronavirus pandemic by the government, the virus’ impact on the economy and the continued enthusiasm surrounding Brexit.