Forex News

04:26:25 10-06-2024

GBP/USD remains on the defensive below 1.2750 amid firmer US Dollar

  • GBP/USD trades with mild gains near 1.2725 despite the firmer US Dollar on Monday. 
  • The US economy created more jobs than expected in May, which dampened the expectation of Fed rate cuts in September. 
  • The stronger US employment report pared back Fed rate cut expectation, weighing on the Greenback. 

The GBP/USD pair recovers some lost ground around 1.2725 during the early Asian trading hours on Monday. The upside of GBP/USD might be limited amid the lower bets of the US Federal Reserve (Fed) rate cuts this year after the stronger-than-expected US Nonfarm Payrolls (NFP) data. Investors will closely watch the UK employment data for May, which is due on Tuesday. On the US docket, the Consumer Price Index (CPI) and Federal Reserve (Fed) interesting that decision this week will be in the spotlight.

On Friday, the US Nonfarm Payrolls rose 272,000 in May from a 165,000 increase in April, above the market consensus of 185,000. Meanwhile, the Unemployment Rate ticked up to 4.0% in May from 3.9% in April. The Average Hourly Earnings climbed 4.1% YoY in May from 4.0% in April (revised from 3.9%), better than the estimate of 3.9%, according to the US Bureau of Labor Statistics. 

The robust US employment report pared back rate cut expectations from the Federal Reserve (Fed) on Thursday. Futures traders see almost no chance of a rate cut before September, according to data from CME Group. The higher-for-longer US rate mantra is likely to support the US Dollar (USD) for the time being. 

On the other hand, the UK Employment data on Tuesday, including Claimant Count Change, Employment Change, and  Average Earnings data. Any signs of more layoffs could trigger the expectation of early rate cuts by the Bank of England (BoE) and undermine the Pound Sterling (GBP). 


Today last price 1.2725
Today Daily Change 0.0005
Today Daily Change % 0.04
Today daily open 1.272
Daily SMA20 1.2718
Daily SMA50 1.26
Daily SMA100 1.2638
Daily SMA200 1.2545
Previous Daily High 1.2818
Previous Daily Low 1.2716
Previous Weekly High 1.2818
Previous Weekly Low 1.2695
Previous Monthly High 1.2801
Previous Monthly Low 1.2446
Daily Fibonacci 38.2% 1.2755
Daily Fibonacci 61.8% 1.2779
Daily Pivot Point S1 1.2685
Daily Pivot Point S2 1.2649
Daily Pivot Point S3 1.2583
Daily Pivot Point R1 1.2787
Daily Pivot Point R2 1.2853
Daily Pivot Point R3 1.2889



News provided by the portal FXStreet