- Sterling buoyed by upbeat UK GDP and BoE Greene’s disinflation remarks.
- Trump reportedly gives Treasury Secretary Bessent room to adjust China tech controls.
- US adds 139K jobs in May, beating forecasts; Unemployment Rate steady at 4.2%.
GBP/USD registered minimal gains during the North American session after hitting a daily high of 1.3581, following a Wall Street Journal article suggesting that US President Donald Trump is granting maneuvering room to US Treasury Secretary Scott Bessent regarding tech sales and lift export controls on China. At the time of writing, the pair trades at 1.3532, up by 0.05%.
Pound lifts slightly amid easing US-China trade tensions and resilient UK economic outlook
The breaking news was met with cheers from investors as US equities traded in the red. Meanwhile, investors continued to digest a solid jobs report in the United States (US), which shows the economy added 139K new jobs, exceeding estimates of 130K, while the Unemployment Rate remained unchanged at 4.2%. This demonstrates the economy’s resilience despite cooling, primarily driven by higher interest rates resulting from uncertainty over tariffs.
The Pound Sterling has benefited from broad US Dollar weakness and a resilient UK economy due to stronger-than-expected Q1 2025 GDP figures. In the meantime, Bank of England’s (BoE) Monetary Policy Committee (MPC) member Greene said the disinflation process is ongoing and expects inflation to come down toward the bank’s target in the mid-term.
Traders would be eyeing Britain’s government spending plans this week. This, along with BRC Retail Sales, UK jobs data, and the Trade Balance, would be some of the catalysts for the GBP/USD.
In the US, the economic schedule will eye the release of the Consumer Price Index (CPI) figures for May, the Producer Price Index (PPI) for the same period, jobless claims, and the University of Michigan (UoM) Consumer Sentiment.
GBP/USD Price Forecast: Technical outlook
From a technical standpoint, the GBP/USD is upward biased, finding support at the 20-day Simple Moving Average (SMA) at 1.3520. The major bounced off those levels, sitting comfortably around the 1.3550 area, with traders awaiting a fresh catalyst.
For a bullish continuation, the GBP/USD must clear the June 5 daily high of 1.3616, the yearly higher, which could exacerbate a move to 1.37. On the flip side, sellers need to drive the pair below 1.35, which could immediately clear the path to test the May 25 swing low of 1.3412.
