The GBPUSD pair demonstrates a fast growth

02 June 2023 142
The GBPUSD pair demonstrates a fast growth

On Friday, the U.S. dollar fell almost to a week low against major currencies, showing its worst week since the middle of January.

 

Hopes for a pause in monetary policy tightening by the Federal Reserve System (Fed) lowered the U.S. dollar's position amid the progress in the U.S. national debt level deal.

 

According to Philadelphia Fed President Patrick Harker, U.S. central banks should not raise interest rates at their next meeting, regardless of high inflation.

 

At the moment, the markets estimate the probability of interest rates remaining unchanged in June at 73.7%.

On Thursday, the U.S. Senate approved a bill with two-party support signed by President Joe Biden, that raises the national debt ceiling to $31.4 trillion, preventing the first default in history. A week ago the market was buying the dollar with good prospects for the U.S. government debt, but now that event is played back.

 

The GBPUSD pair doubled its growth on Thursday. The business climate indicator for the manufacturing sector in the U.K. rose to 47.1. Meanwhile, the U.S. manufacturing activity index declined to 46.9. The currency pair gained more than 100 points on this background.

 

Today, investors will be watching the U.S. Department of Labor's Nonfarm payrolls report (NFP). The data will be published at 11:30 GMT. The indicator estimates the absolute change in the number of workers in the country who are officially employed full-time or part-time during the reporting period. The number of employed people is expected to fall to 180K from the previous value of 253K. Confirmation of the forecast could lower the price of the U.S. dollar.

 

After the price went out the downward correction corridor the pair's quotes moved upward quickly. Waiting for the U.S. Labor Department report may correct the price of the currency pair in the range of 1.2495 - 1.2525. A rebound from 1.2495 may confirm the presence of the uptrend that is forming.

 

Signal:

The short-term prospects for the GBPUSD pair are to buy near the level of 1.2495.

The target is at the level of 1.2585.

Part of the profit should be fixed near the level of 1.2445.

The stop-loss is at the level of 1.2465.

 

"Bullish" trend has a card-like character, so the volume of trade should be less than 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

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