Pound Tumbles to 6-Week Lows Despite Upbeat Jobs Data as Dollar Soars

The Sterling pound fell to new monthly lows against the dollar despite the release of mostly upbeat UK employment data as the dollar gained against its peers. The GBP/USD currency pair fell driven by the resurgent greenback despite US Treasury yields pulling back as investors reacted to the Fed Chair’s comments downplaying inflation concerns.
The GBP/USD currency pair fell from a high of 1.3861 in the Australian market to a low of 1.3751 in the early London session and was headed lower at the time of writing.
The currency pair’s decline was fueled by the dollar’s rally as tracked by the US Dollar Index, which hit a high of 92.35 today. The release of the latest UK labour market overview had a muted impact on the pair. According to the Office for National Statistics, UK employment fell by 147,000 in January versus the expected 167,000 decline. However, the average earnings for UK workers were lower than expected. Comments by the UK chancellor of the Exchequer Rishi Sunak that the G7 countries are about to agree on cross-border taxation had a minimal impact on the pair.
The cable fell to its daily lows as Fed Chair Jerome Powell and US Treasury Secretary Janet Yellen testified before Congress. Powell said that inflation would rise this year, but its impact would not be persistent. Yellen added that the Biden administration would review corporate taxes.
The currency pair’s future performance is likely to be affected by tomorrow’s multiple UK releases and US dollar dynamics.
The GBP/USD currency pair was trading at 1.3744 at 20:30 GMT, having fallen from a high of 1.3861. The GBP/JPY currency pair was trading at 149.23 after dropping from a high of 150.77.
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Original from: www.earnforex.com