GBP Rebounds Against USD as Softer Jobs Data Weighs on Greenback
The British Pound has rebounded against the US Dollar as softer jobs data weighed on the USD. The GBP/USD traded at 1.3419 before recovering to 1.3451.
US jobs data, released by the Job Openings and Labour Turnover Survey (JOLTS), showed a dip in job openings from 7.537 million to 7.359 million, lower than expected 7.4 million. However, layoffs remained little changed, indicating a balanced labour market.
The US Commerce Department also revealed that the trade deficit narrowed in June, down from $-77.6 billion to $-73.3 billion, slightly above estimates of $-73 billion. The improvement in risk appetite is supporting the GBP/USD pair as hopes rise for a deal between the US and Iran on reopening the Strait of Hormuz.
Hopes of a deal pushed Oil prices lower, with West Texas Intermediate (WTI) falling 4% to $76.73 per barrel. The US Dollar Index (DXY), which tracks the dollar's value against six currencies, is down 0.04% to 99.94.