The British pound climbs past 1.2600 as traders await UK job data and Fed meeting minutes for further market direction.
GBP/USD Extends Gains as UK Employment and Earnings Data Looms
The British pound against the US dollar kept rising on Monday by 0.03%, surpassing the 1.2600 mark.
Traders are looking forward to UK reports and job data scheduled for release on Tuesday after seeing gains for five consecutive days.
On Presidents Day, with the U.S. stock markets closed for the holiday break, trading activity decreased a bit; however, the British Pound remained steady throughout the day. The focus of investors shifted towards changes in the employment landscape in the UK. There is a level of anticipation surrounding the expected increase in average earnings for the final quarter of last year from 5%. Economists predict that there may be an uptick to 10%. The ILO Unemployment Rate is also projected to rise slightly from its previous level of 4%.
The Federal Reserve’s meeting minutes coming out on Wednesday might impact market sentiments and provide insights into U.S. monetary policy decisions. The U.S. PMI data scheduled for Friday could also affect price movements during the week.
Since dropping to a low point in January around 1.2500, the GBP/USD exchange rate has shown resilience, reflecting market optimism and evolving economic conditions. Traders will closely monitor both UK and U.S. economic indicators for further direction in the currency pair’s movement.
