GBP/USD Stagnates Near 1.3500 as US Data Beats Forecasts, Trade Uncertainty Lingers

GBP/USD Stuck in Range Near 1.3500 as Traders Eye Trade Talks and US Data

GBP/USD Drifts Just Above 1.3500 with Mixed US Data, Cautious BoE

The GBP/USD currency pair struggled to gain momentum on Tuesday, hovering just above the 1.3500 level amid conflicting signals from US economic data and subdued UK central bank commentary. Despite bullish momentum from last week, Cable now appears trapped in consolidation.

BoE Testimony Lacks Market Impact

The Bank of England's latest Monetary Policy Report hearings before the UK Parliament failed to energize markets. Traders were left unconvinced by the central bank’s forward guidance, with no fresh clues offered regarding the pace of rate changes or outlook for inflation.

📌 Learn more: Understanding the Bank of England's Policy Tools

Strong JOLTS, Weak Factory Orders Add to USD Volatility

On the US data front, JOLTS Job Openings unexpectedly rose to 7.391 million in April, beating forecasts of a decline to 7.1 million. This data point lent some support to the US Dollar, indicating continued labor market resilience.

However, the positive jobs data was offset by disappointing Factory Orders, which fell 3.7% MoM, marking the lowest monthly reading in over a year. March data was also revised downward sharply to 3.4% from an initial 4.3%.

US-China Trade Drama Keeps Markets on Edge

Traders remain wary as US-China trade tensions persist. While the Trump administration has hinted at possible direct talks between President Trump and China's President Xi Jinping, no concrete meeting dates have been announced.

📌 Related article: How Trade Wars Impact Forex Markets

Market participants continue to hope for a resolution, but repeated accusations of deal violations on both sides leave negotiations in a fragile state.

Focus Shifts to ISM Services PMI

Attention now turns to Wednesday’s ISM Services PMI release for April, which could influence near-term direction for the US Dollar and, by extension, GBP/USD. Traders are looking for signs of resilience in the US service sector amid broader economic uncertainty.

Suggested Internal Links:

• GBP/USD Forecast and Technical Outlook
• Understanding US Economic Indicators
• BoE vs. Fed: Interest Rate Strategy