Pound Sterling Price News and Forecast: GBP falls back

Pound Sterling falls back as weak UK labor demand keeps BoE dovish bets intact

The Pound Sterling (GBP) surrenders its marginal gains against its major peers on Tuesday in the aftermath of the United Kingdom (UK) labor market data for three months ending November. The Office for National Statistics (ONS) showed that labor growth remained significantly weak, with a fresh addition of 35K workers against the former reading of 173K.

The ILO Unemployment Rate rose to 4.4%, higher than estimates and the prior release of 4.3%. Weak labor growth clearly shows employers’ discontent with the government’s decision to increase their contribution to National Insurance (NI). Read more...

GBP/USD Forecast: Pound Sterling struggles to keep buyers interested

GBP/USD rose sharply and registered a 1.3% gain on Monday. The pair, however, reversed its direction and erased a large portion of its winnings early Tuesday. At the time of press, GBP/USD was trading near 1.2250, losing about 0.6% on the day.

Although stock and bond markets in the US were closed in observance of the Martin Luther King Jr. Day holiday on Monday, the US Dollar (USD) came under strong selling pressure, fuelling GBP/USD's rally. Read more...

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