British Pound edges higher as USD softens ahead US jobs data

On Monday, the British Pound (GBP) edged upwards as the US Dollar (USD) softened ahead of US job data release. At the time of writing, GBP/USD was trading at 1.3549. Sentiment took a turn as tensions between the US and Iran escalated, pushing energy prices higher. West Texas Intermediate (WTI) crude oil, the US benchmark, reached $85.56 per barrel, up 2.50% from its peak of $86.79.

The US-Iran conflict raised concerns about the Strait of Hormuz, prompting US President Donald Trump to threaten retaliation, per Fox News. Fed Chair Kevin Warsh had previously hinted that inflation remains above the central bank's target, emphasizing the priority of maintaining a solid jobs market. Traders now await the Nonfarm Payrolls figures on Friday and inflation data a week before the Federal Reserve's subsequent meeting.

On Tuesday, the US economic calendar will unveil manufacturing activity, specifically the ISM Manufacturing PMI for August, with a forecast of deceleration from 55.6 to 55.2. Traders will also keep an eye on the JOLTS Job Openings for July, indicating the strength of the labor market. In the UK, the upcoming Autumn Budget under the new Prime Minister Andy Burnham, coupled with US Dollar dynamics, will influence the GBP/USD exchange rate.

The Bank of England Monetary Policy Hearings and Governor Andrew Bailey's speech on Thursday will also provide valuable insights for market participants. The daily chart shows GBP/USD hovering around 1.3550, maintaining a bullish near-term bias as the pair stays above key support levels. The technical analysis suggests that if the pair breaks above the broken rising trend line near 1.3644, it could lead to a continuation of the broader bullish trend.