Pound US Dollar (GBP/USD) Exchange Rate "Trapped in Range" After US JOLTs Job Openings

December 4, 2024 - Written by John Cameron

STORY LINK Pound US Dollar (GBP/USD) Exchange Rate "Trapped in Range" After US JOLTs Job Openings

The Pound US Dollar exchange rate was trapped in a narrow range on Tuesday following the release of the US’s latest JOLTs job openings for October.

The US Dollar (USD) held steady against most of its counterparts on Tuesday following the release of the country’s latest JOLTs job openings data.

The index surpassed market expectations, rising from a multi-year low of 7.372 million to 7.744 million, which was higher than the initial forecast of 7.48 million.

Despite the positive data, the 'Greenback' failed to gain significant traction and remained largely unchanged against its rivals.

This was partly due to the safe-haven USD being slightly weakened by the risk-on trading environment on Tuesday.

The Pound (GBP) maintained its ground against most currencies on Tuesday despite the release of some underwhelming mid-level economic data.

The UK's latest BRC retail sales monitor failed to meet expectations, with the index dropping from 0.3% to -3.4%, contrary to predictions of a 0.7% increase.

The recent retail sales monitor, which tracks UK retail sales on a like-for-like basis, hit a six-month low in November, largely attributed to disruptions from storm Bert and the delayed 'Black Friday' sales.

Nevertheless, Sterling demonstrated resilience on Tuesday, supported by a risk-on market sentiment thanks to its growing stratus as a risk-sensitive currency.

GBP/USD Exchange Rate Forecast: PMIs in the Spotlight

Looking forward, the key driver of movement for the Pound US Dollar exchange rate as we head into Wednesday is anticipated to be the release of the latest PMI figures from both the UK and the US.

For the Pound, the UK's final services PMI is expected to dip from 52.0 to 50.0.

Meanwhile, the US ISM services PMI is also projected to decline, albeit more modestly, from 56 to 55.6.

If the data aligns with expectations, GBP exchange rates may face new pressures, while the US Dollar could find support following the PMI releases.

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TAGS: Pound Dollar Forecasts