GBP/USD Holds Steady Below 1.3450 as Traders Await UK Labor Data

The GBP/USD pair is largely unchanged, holding just below the 1.3450 level on Tuesday, after the release of BRC Like-For-Like Retail Sales data. Traders are now looking to the upcoming UK labor market figures due later in the day for fresh direction.

Retail Data Misses Expectations

The British Retail Consortium (BRC) reported a 1.8% year-on-year increase in Like-For-Like Retail Sales for July, slightly missing the expected 2.1% increase and slower than June’s 2.7% growth. Helen Dickinson, CEO of the BRC, emphasized that current sales growth is insufficient to compensate for the £7 billion in additional costs retailers faced after the recent budget.

Market Focus Shifts to UK Labor Data

The focus now shifts to the UK labor market data later today, including Claimant Count Change, Employment Change, and the ILO Unemployment Rate. These figures will offer critical insights into the labor market’s health, which could have a notable impact on GBP/USD in the near term.

US Inflation Data to Guide Fed Outlook

Across the Atlantic, the market is gearing up for the release of US Consumer Inflation data later today. The July CPI is expected to rise 0.2%, slightly lower than June’s 0.3%, with the annual rate projected to accelerate to 2.8%. Core CPI, excluding volatile food and energy prices, is expected to rise by 0.3%.

This data could influence the Federal Reserve’s outlook on interest rates, with markets already pricing in around 84% odds of a rate cut at the September meeting, slightly down from 90% a week ago, according to the CME FedWatch tool.

US-Russia Meeting Could Boost Market Sentiment

The Pound Sterling (GBP) could gain support from improved market sentiment, especially ahead of the US-Russia summit on August 15. US President Donald Trump and Russian President Vladimir Putin will meet in Alaska to discuss a potential resolution to the ongoing Ukraine conflict, though Ukrainian President Volodymyr Zelenskyy is not expected to attend.

Stay Updated with Daily Forex Pakistan.