GBP/USD BOUNCED BUT REMAINS TRAPPED WITHIN NEAR-TERM CONGESTION
- GBP/USD recovered one-quarter of one percent on Wednesday.
- Despite a bullish bounce, Cable remains hampered by familiar levels.
- US jobs data weighs on market sentiment as NFP looms ahead.
GBP/USD caught a bounce on broad-market risk flows pushing down the Greenback, keeping Cable bid on the north side of the 1.3100 handle on Wednesday. Despite a pivot in risk appetite, GBP bidders were unable to push price action into new territory, and the pair remains hobbled within recent levels.
There remains very little to say about the UK’s economic calendar for the remainder of the trading week; UK data releases are strictly low-tier through Friday, leaving Cable traders at the mercy of overall market flows into and out of the US Dollar.
US JOLTS Job Openings in July missed the mark, adding 7.673 million available jobs compared to the forecast 8.1 million, compared to the previous month’s revised 7.91 million. With the Federal Reserve (Fed) broadly expected to begin cutting interest rates on September 18, markets are tilting further into bets of a 50 bps cut to kick off the next rate cutting cycle. Rate markets are still pricing in 100 bps in total cuts by the end of 2024, but there’s still a 57% chance of the Fed’s September rate call being a slimmer 25 bps, according to CME’s FedWatch Tool.
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