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Source: Newsmaker.id
The pound sterling held relatively steady against the US dollar during Asian trading on Thursday (Sept 3), having previously come under pressure and neared a three-week low. GBP/USD traded around US$1.3482 as market participants awaited a series of US economic data releases leading up to Friday's Nonfarm Payrolls report.
Sterling attempted a recovery following a decline in the previous session, when the dollar was bolstered by growing expectations that the Federal Reserve might still raise interest rates in September. However, pressure on the dollar eased during Asian trading as US Treasury yields retreated from their highs.
Sentiment toward the dollar also softened after US private-sector employment data showed growth falling short of forecasts. These figures raised concerns that the US labor market is losing momentum, making investors increasingly cautious about maintaining bullish positions on the dollar ahead of the NFP report.
Nevertheless, the pound has yet to find a strong catalyst for further gains. Markets are weighing the outlook for UK interest rates amidst risks of inflation and economic slowdown, while the UK services PMI for August due for release today is expected to come in at 52.8, up from the previous 52.1.
On the US front, markets are also awaiting weekly jobless claims data, with initial claims projected at around 205,000. Weaker-than-expected data could increase pressure on the dollar, whereas a stronger figure might revive expectations for a more hawkish Federal Reserve policy.
Primary attention remains focused on Friday's Nonfarm Payrolls report. Markets anticipate the US economy added approximately 56,000 jobs rebounding from a previous loss of 23,000 while the unemployment rate is expected to hold steady at around 4.1%. A weaker-than-expected outcome could put further downward pressure on the dollar and pave the way for gains in GBP/USD. (CP)