British Pound rebounds as soft JOLTS and Oil decline pressure USD
The Pound Sterling (GBP) recovers some ground against the US Dollar (USD) on Tuesday, up 0.14%, as US jobs data was softer than expected but confirmed the strength of the labor market, with layoffs being little changed. The GBP/USD pair trades at 1.3451 after rebounding from 1.3419.
On Tuesday, the British Pound Sterling (GBP) experienced a rebound against the US Dollar (USD), rising by 0.14% to 1.3451 following softer-than-expected US jobs data and a decline in oil prices. The US Job Openings and Labor Turnover Survey (JOLTS) for June showed a decrease in job openings to 7.359 million, indicating a balanced labor market with one vacancy for each unemployed worker.
The US trade deficit narrowed in June, dropping from -$77.6 billion to -$73.3 billion, which bolstered the GBP/USD pair. Hopes of a possible deal between the US and Iran to reopen the Strait of Hormuz led to a decrease in oil prices, with West Texas Intermediate (WTI) falling 4% to $76.73 per barrel. The US Dollar Index (DXY) dropped 0.04% to 99.94 due to crude oil and reduced expectations of Federal Reserve hikes.
The absence of an economic calendar in the UK allowed investors to focus on the new Prime Minister Andy Burnham's fiscal policy. The US economic calendar would feature further jobs data, including jobless claims on Thursday and Nonfarm Payrolls on Friday. Technical analysis indicated a mildly bullish near-term bias for GBP/USD, with support levels around 1.3445 and resistance at 1.3526, which could potentially lead to a deeper recovery if sustained.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
