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AnalysisForex

GBP/USD sticks to intraday gains, remains below mid-1.3100s amid modest USD uptick

GBP/USD
FXStreetSep 9, 2024 1:27 AM

  • GBP/USD kicks off the new week on a positive note, though the upside seems limited.
  • A weaker risk tone lends support to the safe-haven USD and could act as a headwind.
  • Reviving BoE rate cut bets might further contribute to capping the upside for the GBP.

The GBP/USD pair attracts some dip-buying during the Asian session on Monday and climbs back closer to mid-1.3100s in the last hour, though a combination of factors might cap any further gains. 

The closely-watched US monthly employment details released on Friday suggested that the labor market momentum is slowing more than expected and added to concerns about the health of the US economy. This, in turn, tempers investors' appetite for riskier assets, which benefits the safe-haven US Dollar (USD) and acts as a headwind for the GBP/USD pair. 

Meanwhile, a survey of recruiters showed that Britain's labour market cooled noticeably last month as job placements fell sharply and pay growth slowed. This backs the case for interest rate cuts from the Bank of England (BoE), which might further hold back bulls from placing aggressive bets around the British Pound (GBP) and keep a lid on the GBP/USD pair. 

Investors now look forward to the release of the UK monthly jobs data due on Tuesday. In the meantime, the USD price dynamics will continue to play a key role in influencing the GBP/USD pair in the absence of any relevant market-moving economic data, either from the UK or the US on Monday.

Reviewed byTony
Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

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