Currency rates today5/16/2023 ![]() ![]() March’s unemployment is expected to remain at 3.6%, close to the 50-year low of 3.4% recorded in January.Īdditionally, non farm payrolls for March are expected to see 240,000 jobs added to the US economy. The potential signals of a still-tight US labour market could also see markets place additional Fed rate hike bets.įriday’s high-impact employment data could add to these bets if it prints as forecast and points to tightness in the US labour market. ![]() Claims for the week ending April 1 are expected are expected to remain close to previous levels. Jobless claims on Thursday could also provide a boost to the Pound. The data is forecast to remain close to previous highs, signalling resilience in the US private sectors. The US Dollar could see a boost on Wednesday following the release of latest US services PMI. GBP/USD Exchange Rate Forecast: Will US Labour Market Remain Tight? The currency came out the other side of the crisis relatively intact when compared to its peers. ![]() Investors are also more confident in the Pound’s fortunes following the banking shocks of recent weeks. The hopes for further action from the BoE were capped by dovish comments from policymaker Silvana Tenreyro on Tuesday. Markets are currently pricing in an 18bps hike from the central bank at their May meeting, with an additional 50bps worth of hikes anticipated over the summer. Sterling was bolstered by BoE rate hike bets and some renewed optimism in the UK’s economic outlook.Įxpectations of interest rate hikes from the BoE remain elevated despite signs of cooling inflation in the UK. The Pound (GPB) consolidated its gains over the course of Tuesday. Pound (GBP) Exchange Rates Boosted by BoE Bets February’s orders fell by 0.7% versus the expected drop of 0.5%. The prospect of a slowdown in policy tightening from the Federal Reserve kept pressure on the US Dollar, although the possibility of a soft landing for the US economy limited the negative impact of the data.Ī second consecutive monthly fall in US factory orders added to USD’s losses on Tuesday. Markets took the data as signs of a cooling labour market in the US and reduced inflationary pressures. The figures represented the lowest level since May 2021. February’s JOLTs job openings figures printed a drop to 9.931m, well above the forecast fall to 10.4m. USD continued to decline over the course of the day following multiple data releases. The safe-haven ‘Greenback’ was pulled lower against its peers by an improving market mood. The US Dollar (USD) lost ground on Tuesday. US Dollar (USD) Exchange Rates Tumble as Job Openings Figures Point to Cooler Labour Market February’s job openings fell to their lowest point since May 2021.Īt time of writing the GBP/USD exchange rate is at around $1.2511, which is up roughly 0.7% from this morning’s opening figures. Bets on additional interest rate hikes from the Bank of England (BoE) pushed the pairing higher.Įvidence of some slack in the US labour market also lent support to GBP/USD. The Pound US Dollar (GBP/USD) exchange rate climbed over the course of Tuesday. ![]()
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