Investors await July’s Nonfarm Payrolls report, expecting 80K new jobs, as the pair hovers near a month-long trading range.
The British Pound (GBP) retreated below 1.3450 against the US Dollar (USD) Friday, paring gains from the prior session. The pair remains confined to a 1.3400-1.3500 range, a band it has traded within since early August, as markets await key US employment data.
July’s Nonfarm Payrolls report is projected to show 80K new jobs, up from June’s 57K, with unemployment steady at 4.2% and wage growth holding at 0.3% month-over-month. The USD gained modestly Thursday after reports suggested Fed Chair Kevin Warsh may support a September rate hike if inflation persists.
Analysts at UOB Group note GBP/USD momentum has weakened, with resistance at 1.3555 unlikely to break unless support at 1.3410 holds. The outcome of the NFP report could determine near-term direction for the pair.