Pound Sterling corrects against US Dollar ahead of US labor market data
The Pound Sterling (GBP) corrects to near 1.3700 against the US Dollar (USD) during the European trading session on Wednesday from the fresh three-and-a-half-year high around 1.3800 posted the previous day. The GBP/USD pair faces selling pressure as the United States (US) currency gains ground, following upbeat JOLTS Job Openings data for May.
The data showed on Tuesday that US employers posted fresh 7.769 million job vacancies, surprisingly higher than 7.395 million in April. Economists expected US firms to have posted 7.3 million jobs.
At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rises to near 96.90. The DXY gained ground on Tuesday, closing the day at 96.64 after bottoming near 96.40 and following a nine-day losing streak.
However, the US Dollar remains broadly under pressure as it continues to face backlash due to United States (US) President Donald Trump’s attack on the Federal Reserve’s (Fed) independence, uncertainty surrounding the July 9 tariff deadline and Trump’s so-called “Big Beautiful Bill”.
Analysts at National Australia Bank (NAB) said, "The confirmation that Trump’s bill is an increase in issuance, an increase in government spending well beyond its means, is not necessarily good news for the Treasury market, and it's arguably one of the reasons the US Dollar's going down.
source; Fxstreet
