GBP USD in focus ahead of UK jobs inflation report GDP
Aside from the release of meeting minutes from major central banks, including the US Federal Reserve and European Central Bank, this week also features key releases from the UK in the form of jobs data and inflation report hearings on Wednesday, as well as UK GDP on Thursday.
Share this:
Aside from the release of meeting minutes from major central banks, including the US Federal Reserve and European Central Bank, this week also features key releases from the UK in the form of jobs data and inflation report hearings on Wednesday, as well as UK GDP on Thursday. Ahead of these important releases, GBP/USD has managed to remain aloft not too far off its recent long-term highs around 1.4300, aided by persistent weakness in the US dollar in recent weeks and months.
UK wage growth figures on Wednesday should be a key driver for the pound this week. The average earnings index (3m/y) for December is expected to have remained unchanged from the previous month’s reading at 2.5%. The unemployment rate in December is expected to have remained unchanged at 4.3%. Thursday’s UK GDP reading for Q4 of last year is expected to have risen by 0.5%. The outcomes of these releases, along with the Fed’s Wednesday release of minutes from its last policy meeting at the end of January, will be major influencers of GBP/USD movement this week.
Thus far, this week has seen GBP/USD fall as the US dollar has staged a rebound from its new 3-year lows established late last week. With any further dollar recovery on rising expectations of higher inflation and interest rates in the US, GBP/USD could be poised to fall further from its recent highs. The key support level to the downside to watch in this event is around the 1.3800 level. Any sustained break below 1.3800 would confirm weakness in the currency pair, with a further short-term downside target around the key 1.3600 support level.
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
British Pound Short-term Outlook: GBP/USD Selloff Breaks June Uptrend 9 22 2026
Sterling has slipped below its 200-day moving average as downside momentum carries GBP/USD toward another major technical support zone.
British Pound Forecast: GBP/USD Heads for Biggest Weekly Drop Since May 9 17 2026
Sterling selling has intensified after the September range broke lower, with GBP/USD now confronting a major Fibonacci support zone.
EUR/USD Forecast: Euro Extends Losses Ahead of Fed Rate Decision
The euro has started to face a more challenging period in the short term. The EUR/USD pair has already declined by nearly 0.81% over the last four trading sessions, a move that has begun to reinforce a meaningful bearish bias in favor of the U.S. dollar.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.