GBP Finds Footing as Markets Await Crucial US Labour Data

The British Pound (GBP) has found support at 1.3420 against the US Dollar (USD), causing it to edge higher and reach session highs above 1.3440. The mild risk appetite in markets, driven by hopes of a negotiated breakthrough in Iran and investors' cautiousness ahead of key US labour market releases, is keeping US Dollar bulls subdued.

The situation in Iran remains tense but calm for the second consecutive day, with conflicting reports emerging from Tehran. Despite US President Donald Trump's assertion that this is Iran's last chance to sign a good deal, Iranian authorities have denied any talks with US negotiators and reiterated their threats to strike the US Navy if the blockade continues.

The focus today is on the US JOLTS Job Openings data from June, due later on Tuesday. Economists at Deutsche Bank note that markets await incoming data to reinforce the view that 'the US labour market remains resilient.'

However, analysts anticipate a mixed report, with an employment growth of +65k and the Unemployment Rate steady at 4.2%, although risks are skewed towards a rounding up to 4.3% if labour force participation rebounds after last month's sharp decline.