The Pound Sterling registers back-to-back bearish days over the last two days, down about 0.05% after US economic data revealed that the labour market remains solid, while investors eye Central Bank speakers at the Jackson Hole Symposium.
The GBP/USD trades at 1.3588, after reaching a daily high near 1.3600
GBP/USD weakens as sticky inflation comments bolster Fed tightening risks The recent tranche of US data is supporting the Greenback, following the release of Core PCE data on Wednesday and the US Department of Labour’s labour market figures on Thursday. Initial Jobless Claims for the week ending August 22 came in at 203K, below forecasts of 208K, suggesting layoffs remain low. Other data showed that the trade deficit widened to $118.8 Billion in July from $101.4 Billion in the previous month, which is the largest goods trade gap since March 2025, when it hit a record as companies rushed to import goods ahead of Trump’s “Liberation Day” tariffs announcement.
In the meantime, the US Dollar Index (DXY), which tracks the buck’s performance versus six currencies, holds firm at 99.14, following the release of solid data during the last two days. Federal Reserve officials cross the wires at Jackson Hole The Fed parade began with Kansas City Fed Jeffrey Schmid, who described inflation as “still stubborn” and “still sticky” in a CNBC interview on Thursday. ” Meanwhile, the Chicago Fed’s Austan Goolsbee also said inflation is his top concern, while the Cleveland Fed’s Beth Hammack stated that “now is the time to act given the persistence of inflation.” This has kept GBP/USD under downward pressure as the chances of further Fed tightening have increased. In the UK, the economic docket is absent, leaving Sterling reliant on US Dollar-linked dynamics.