- GBP/USD maintains its position as the US Dollar struggles due to economic uncertainty in the US.
- JOLTS Job Openings posted 7.39 million new jobs in April, surprisingly higher than the expected 7.1 million.
- BoE Governor Andrew Bailey reiterated that interest rates are likely to head lower.
GBP/USD edges higher after registering losses in the previous session, trading around 1.3520 during the Asian hours on Wednesday. The pair may appreciate as the US Dollar (USD) attracts sellers under the “Sell America” trend amid rising tariff uncertainty, which could hurt growth in the US economy.
Job Openings and Labor Turnover Survey (JOLTS) Job Openings posted 7.39 million new positions in April, higher than March’s 7.2 million openings. This figure surprisingly came in above the market expectation of 7.1 million. Traders await the US Nonfarm Payrolls (NFP) report for May, which is expected to show 130K job additions.
US President Donald Trump and Chinese President Xi Jinping were expected to meet soon to resolve trade disputes following China’s Ministry of Commerce rejecting the US accusation that Beijing is breaching the tariff truce reached earlier this month.
The Bank of England (BoE) officials appeared before Parliament to share details of the central bank’s policy outlook during the Monetary Policy Report Hearings. BoE Governor Andrew Bailey expressed his belief again that interest rates are likely to reduce; however, he highlighted that the path ahead is increasingly uncertain. Bailey also noted that growing global trade tensions could potentially dampen investment and economic growth.
The BoE hearings also indicated that there is no clear consensus on how quickly the interest rates will go lower. Some members are concerned that inflation may persist, while others believe that keeping rates too high for too long could harm the economy. With opinions split, the central bank is likely to make the final decision on a data-driven approach in the upcoming months.
