The British Pound jumps to near 1.3340 against the US Dollar ahead of the US NFP data for June.
Fed’s Warsh stresses to bring price stability, warning that inflation is too high.
UK’s leadership change is unlikely to increase strain on fiscal policy.
The British Pound (GBP) trades 0.5% higher to near 1.3340 against the US Dollar (USD) during the European trading session on Thursday. The GBP/USD pair reflects strength as the US Dollar underperforms its peers ahead of the United States (US) Nonfarm Payrolls (NFP) data for June, which will be published at 12:30 GMT.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Japanese Yen.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
USD | -0.25% | -0.39% | -0.69% | -0.09% | -0.08% | -0.16% | -0.44% | |
EUR | 0.25% | -0.15% | -0.46% | 0.14% | 0.16% | 0.10% | -0.19% | |
GBP | 0.39% | 0.15% | -0.30% | 0.26% | 0.33% | 0.25% | -0.04% | |
JPY | 0.69% | 0.46% | 0.30% | 0.59% | 0.62% | 0.51% | 0.26% | |
CAD | 0.09% | -0.14% | -0.26% | -0.59% | 0.02% | -0.05% | -0.34% | |
AUD | 0.08% | -0.16% | -0.33% | -0.62% | -0.02% | -0.06% | -0.36% | |
NZD | 0.16% | -0.10% | -0.25% | -0.51% | 0.05% | 0.06% | -0.29% | |
CHF | 0.44% | 0.19% | 0.04% | -0.26% | 0.34% | 0.36% | 0.29% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.4% lower to near 101.00.
Market participants will keenly track the US NFP data as it will influence market expectations for the Federal Reserve’s (Fed) monetary policy outlook.
The NFP report will likely show that employers hired 110K fresh workers, lower than 172K in May. The Unemployment Rate is expected to remain steady at 4.3%.
The impact of the US data on the Fed’s interest rate expectations has increased since the return of Kevin Warsh to the central bank as Chairman, following his remarks in the press conference of the June meeting that “forward-looking comments are not well suited in the current policy juncture”.
Fed Chair Warsh again did not deliver any remarks regarding the monetary policy outlook in his speech at the European Central Bank (ECB) Forum in Sintra on Wednesday, but warned that inflation remains “too high”, while stressing the need to bring price stability.
Meanwhile, the British Pound has broadly outperformed its peers this week amid hopes that the United Kingdom (UK) fiscal principles will continue despite the leadership change.
Greater Manchester Mayor Andy Burnham, the frontrunner of UK’s leadership position after Prime Minister (PM) Keir Starmer’s resignation, has stated that he remains committed to the Labour Party’s 2024 manifesto.
Comments
Log in or sign up to join the conversation.