British Pound climbs as UK inflation keeps BoE hike bets alive
The Pound Sterling (GBP) advances on Thursday during the North American session, up 0.25% after US economic data showed that the labor market remains solid, despite a weaker Nonfarm Payrolls in July.
The British Pound (GBP) experienced an increase on Thursday during the North American session, rising by 0.25%. This surge occurred after US economic data indicated that the labor market remained robust, despite a weaker Nonfarm Payrolls report in July. The GBP/USD pair traded at 1.3639 after reaching a high of 1.3659, marking its highest level since February.
The US Dollar Index (DXY) remained stable at 98.79, following its two-and-a-half-month low of 98.55 in May. US Initial Jobless Claims for the week ending August 15 declined from 212K to 206K, falling below expectations of 210K. Meanwhile, the 4-week average of jobless claims rose from 199.75K to 204K. Federal Reserve officials have been discussing interest rate hikes, with some, like St. Louis Fed's Alberto Musalem, still considering a rate increase for the September meeting.
In the UK, July's inflation hit a four-month high, with the Bank of England likely to raise interest rates in 2026, according to traders' expectations. The upcoming release of UK Retail Sales for July and S&P Global Flash PMIS will be closely monitored by traders. The GBP/USD pair is currently at 1.3636, maintaining a bullish outlook as it holds above key support levels.
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