The British pound gains as US job openings fall below expectations, with traders eyeing ADP employment figures for labor market clues.
The GBP/USD pair climbed to 1.3455 in early European trading, supported by weaker US economic data and easing US-Iran tensions. US JOLTS job openings dropped to 7.359 million in June, missing forecasts of 7.4 million and down from May’s 7.537 million, signaling a cooling labor market.
Traders are now focused on Wednesday’s ADP Employment and ISM Services PMI reports, which could provide insights into the US labor market’s health and potential Federal Reserve policy moves. Economists expect July Nonfarm Payrolls to rise by 80,000, with unemployment steady at 4.2%.
The Bank of England held rates at 3.75% last week, with markets pricing in just one more hike this year. A stronger-than-expected US jobs report could boost the USD in the near term.