The GBP/USD pair is showing modest gains, trading near 1.3560 in the early hours of the Asian session on Friday. Trump indicated that the accord with Iran is still active. Market participants are gearing up for the forthcoming US Nonfarm Payrolls report set to be released later on Friday. The GBP/USD pair shows a modest increase, hovering around 1.3560 in the Asian session on Friday. The potential for a peace agreement to address the Middle East conflict reduces the attractiveness of the US Dollar as a safe-haven asset. On Friday, attention will turn to the April employment data from the US.
The statement from US President Donald Trump indicates that the ceasefire with Iran is still in effect, despite the recent military engagements occurring in and around the Strait of Hormuz. He warned that it would be clear if the ceasefire were to conclude, based on the reports available. The Trump administration is closely monitoring Iran’s reaction to its proposal focused on reopening the crucial waterway and resolving the ongoing conflict. Growing optimism surrounding a potential US-Iran peace agreement could result in a weakening of the USD, which may bolster the major pair in the near term.
Market participants are set to closely monitor the highly awaited Nonfarm Payrolls report. Market consensus projects an increase of 62,000 new jobs in April. This indicates a notable decrease from the 178,000 jobs created in March. Furthermore, the Unemployment Rate is expected to remain steady at 4.3%.
The Bank of England has decided to keep the bank rate steady at 3.75%, in line with market predictions from the latest meeting. The framework outlined suggests that although rate increases could be appropriate, the BoE opted not to establish any definitive commitments. BoE Governor Andrew Bailey warned against “forceful tightening” if energy price shocks from the Middle East conflict continue to drive inflation.