GBP/USD held steady above the key 1.3100 level as the trading week kicked off with limited economic data from the UK and US markets closed for the Labor Day holiday. With thin UK data on the horizon, the Pound Sterling’s performance will be dictated by market flows and potential impacts from upcoming US labor figures later this week.
This week, the UK economic calendar is light, offering only low-tier data for GBP traders. In contrast, US Purchasing Managers Index (PMI) figures will be released throughout the week, leading up to the crucial US jobs data on Thursday and Friday. The US ADP Employment Change report on Thursday will set the stage for Friday’s US NFP jobs data, the final major labor update before the highly anticipated Fed rate call on September 18.
Before the US jobs data, Wednesday will see the release of US JOLTS job openings, expected to remain near 8.1 million in July, in line with the previous month.
GBP/USD Price Forecast
Despite a slight retreat from recent highs above 1.3250, Cable remains above 1.3150 as selling pressure on the Greenback eases. The pair continues to stay bullish above the 200-day Exponential Moving Average (EMA) at 1.2725, with a potential downside target for shorts near the 50-day EMA above 1.2900.
GBP/USD Daily Chart
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world, dating back to 886 AD, and is the official currency of the United Kingdom. It is the fourth most traded currency globally, with key trading pairs including GBP/USD, GBP/JPY, and EUR/GBP. The value of the Pound Sterling is influenced by factors such as monetary policy, economic data releases, and trade balances.
Monetary policy decisions by the Bank of England, including interest rate adjustments, play a significant role in shaping the value of the Pound Sterling. Economic indicators like GDP, PMIs, and employment data also impact the currency’s value. Additionally, the Trade Balance, which measures a country’s exports and imports, can affect the strength of a currency.
Overall, understanding these key factors can help investors and traders navigate the movements of the Pound Sterling in the forex market.