Pound Strengthens, Dollar Pressured by Greenland Issues and UK Data
The GBP/USD pair continued its strengthening for the third consecutive day and traded around 1.3430 in Asian trading on Wednesday. This increase was driven by better-than-expected UK employment data, which showed 82,000 jobs added in the three months to November. Furthermore, wage growth also showed improvement, although the unemployment rate remained stable at 5.1%.
Market participants are now awaiting the release of UK inflation data for December, including the CPI, PPI, and Retail Price Index. This data is considered crucial for determining the future direction of the Bank of England's monetary policy. If inflation remains high, the pound could potentially receive further support.
Meanwhile, the US dollar continues to weaken due to escalating geopolitical tensions. US President Donald Trump's statements regarding his ambitions regarding Greenland and threats of new tariffs against European Union countries have added to market concerns. The European Parliament's plan to delay approval of a trade deal with the US has further increased pressure on the dollar. (az)
Source: Newsmaker.id