- GBP/USD moves lower on Tuesday amid sustained buying around the dollar.
- The bulls seem unimpressed and are largely ignoring the upbeat UK jobs data.
- The market’s focus remains on the latest US consumer inflation figures.
The pair GBP/USD remains under pressure during the European session on Tuesday, with the bears still waiting to a sustained weakness below the psychological level of 1.3000.
After the previous day’s two-way price movement, the GBP/USD pair found fresh selling on Tuesday and returned to close to the annual lows touched last week. Investors seemed unimpressed by the mostly upbeat UK employment details.
The UK Office for National Statistics (ONS) reported that ILO unemployment rate unexpectedly fell to 3.8% in three months to February from 3.9% previously. Additional details revealed that median earnings including bonuses increased 5.4% and the number of people claiming unemployment benefits still fell by 46,900 in February.
However, the data did not give any boost to the British pound and it was largely seen overshadowed by underlying bullish sentiment surrounding USD. The prospects of more aggressive tightening by the Federal Reservecoupled with inflation fears, pushed US bond yields to a new multi-year high and supported the dollar.
Therefore, the market’s focus will remain on the latest US consumer inflation figures, to be released later at the start of the American session. In the meantime, concerns that the war in Ukraine and tough new COVID-19 restrictions in China could hit global growth they should support the safe-haven US dollar and cap GBP/USD’s rise.
GBP/USD technical levels
Source: Fx Street
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