Pound Sterling Dips Near 1.3700 Against USD Ahead of US ADP Employment Data

Pound Sterling Dips Near 1.3700 Against USD Amid US Job Data Boost

The Pound Sterling (GBP) edged lower during Wednesday’s European session, nearing 1.3700 against the US Dollar (USD) after the Greenback strengthened on unexpectedly strong US labor market data.

The GBP/USD currency pair dropped from Tuesday’s three-and-a-half-year peak near 1.3800, pressured by rising US job openings figures. According to Tuesday’s report, US employers posted 7.769 million job openings in May, beating economists’ forecast of 7.3 million and the previous 7.395 million in April.

The US Dollar Index (DXY), measuring the USD against six major currencies, climbed to around 96.90, recovering from recent lows and ending a nine-day losing streak.

Despite the positive US economic data, Fed Chair Jerome Powell maintained a "wait and see" approach to monetary policy. Meanwhile, Bank of England Governor Andrew Bailey cautioned about weakening labor market conditions amid global economic risks, adding pressure on the Pound.

Related Articles on Tredu:

• US ADP Employment Data: Impact on GBP/USD
• Fed’s Monetary Policy and Currency Movements
• BoE Labor Market Outlook and GBP Trends