GBPUSD Technical Analysis – Traders await the US labour market data
Fundamental
Overview
The USD recovered most of
the losses triggered by Powell’s dovish tilt at the Jackson Hole Symposium
before giving the gains back yesterday. Traders are now focused on the US
labour market data due next week that will culminate with a crucial NFP report
on Friday. In fact, the data will influence interest rates expectations
greatly.
Right now, the market is
pricing an 89% probability of a rate cut in September and a total of 55 bps of
easing by year-end. Strong data might take the probability for a September cut
towards a 50/50 chance but will certainly see a more hawkish repricing further
down the curve and support the dollar. Soft data, on the other hand, will
likely see traders increasing the dovish bets with a…
