GBP/USD holds gains near 1.3455 ahead of US ADP employment data
The British pound traded modestly higher against the dollar in early European hours, supported by softer US data and easing geopolitical worries. Markets now look to the ADP jobs report and ISM services PMI for direction.
GBP/USD was changing hands around 1.3455 on Wednesday morning in Europe, extending its gradual rise above the 1.3450 mark. The move came as the greenback faced headwinds from weaker-than-expected US economic releases and a de-escalation of US-Iran tensions.
Traders are now focusing on two key reports due later in the US session: the ADP employment change and the ISM services purchasing managers’ index. These figures will be closely watched for clues on the health of the US economy and the likely path of Federal Reserve policy.
A strong set of numbers could revive demand for the dollar, while any disappointment may give sterling further room to edge higher.
Source: FXStreet Forex News