The Market Consolidates Ahead of US Job Data
After a volatile start to the week, the British pound has stabilised, with the GBP/USD and GBP/CAD pairs entering a consolidation phase. Investors are locking in profits following a recent bullish surge, as they await the release of key US labour market data, which could determine the direction of trading in the coming sessions.
Today, preliminary employment figures from ADP are expected, while tomorrow, market participants will focus on the US Non-Farm Payrolls report for June. The forecast anticipates an increase of 120K new jobs (below May data), with a slight rise in the unemployment rate to 4.3%. Additionally, markets will receive figures on jobless claims and average earnings. Any deviation from expectations could significantly impact Federal Reserve interest rate outlooks for the second half of the year.
Political factors are also influencing the market: pressure from Donald Trump on the Federal Reserve leadership has intensified once again. The White House has reportedly sent Jerome Powell a list of global central bank interest rates, with notes suggesting that US rates should be lower than their current levels. These remarks have heightened investor concerns about the Federal Reserve's independence and fuelled speculation over potential policy easing.
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