The GBP/USD pair is experiencing some dip-buying during the Asian session on Monday, climbing back towards the mid-1.3100s. However, several factors may limit further gains.
Friday’s US employment data indicated a greater-than-expected slowdown in the labor market, raising concerns about the US economy’s health. This has dampened investor appetite for riskier assets, benefiting the safe-haven US Dollar (USD) and creating headwinds for the GBP/USD pair.
In the UK, a recent survey of recruiters revealed a significant cooling in the labor market last month, with sharp declines in job placements and slower pay growth. This supports the case for potential interest rate cuts by the Bank of England (BoE), which could deter aggressive bullish bets on the British Pound (GBP) and cap gains for the GBP/USD pair.
Investors are now awaiting the release of UK monthly jobs data on Tuesday. In the interim, USD price movements will be crucial for the GBP/USD pair, given the lack of significant economic releases from both the UK and the US on Monday.
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