As a result of Bailey’s statements, Pound is among the worst performers.
GBP/USD is on track to close at its lowest level since mid-April.
The GBP/USD pair’s recovery was short-lived, as after failing to hold above 1.3800, it fell to 1.3760, its lowest level since mid-April. Under pressure, it holds near the lows.
Ahead of Friday’s non-farm payrolls announcement, the US dollar stays strong in the market. The DXY is currently trading at its highest level in months, near 92.50. At the same time, the pound is one of the poorest performers on Thursday, according to Bank of England Governor Andrew Bailey’s earlier comments.
In the United States, economic statistics revealed a larger-than-expected drop in the ISM manufacturing index to 60.6 in June, as well as a new historic low in initial jobless claims. Markets were unaffected by the figures. For Friday’s NFP, the consensus predicts a 690K employment rise in June. The currency was bolstered on Thursday by rising US yields. Traders are now looking forward to US job data, which might have an impact on monetary policy expectations.
In terms of the pound, Rabobank analysts believe that the pound will be influenced by the release of May monthly GDP, output statistics, and CPI inflation data. “Last month’s upward surprise on the CPI inflation measure was not enough to considerably boost worry levels amongst policy-makers (with the exception of Haldane, who has since left the Bank), GBP bulls will likely be more reluctant to be influenced by another firm report,” they added./n
