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GBP/USD Approaches 1.2700 as Market Anticipates US Nonfarm Payrolls Data


5 January 2024 Written by Anna Segal  Finance Industry Expert Anna Segal

The GBP/USD pair is exhibiting an upward momentum, inching closer to the 1.2700 level amidst a complex interplay of economic factors from both the United Kingdom and the United States. The pair's recent rise, particularly noticeable during the Asian trading session on Friday, can be attributed to a combination of upbeat UK data and dynamics surrounding the US Dollar. As the GBP/USD pair continues its ascent, the market's attention is firmly on the forthcoming US labor data, which is expected to provide further clarity on the health of the US economy.

The interplay between positive UK economic indicators and the evolving economic landscape in the US, including the Federal Reserve's policy decisions, will be pivotal in determining the pair's short-term trajectory.

Influences from the UK

US Dollar Dynamics

Anticipation for US Labor Market Data

Traders and investors are keenly awaiting further data from the US employment sector, including Average Hourly Earnings and Nonfarm Payrolls (NFP) for December. The upcoming ISM Services PMI is also expected to provide valuable insights into the US service sector's current state. These data points are crucial in shaping market expectations and could significantly impact the direction of the GBP/USD pair.

 


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