GBP Rebounds Against USD as Softer US Jobs Data and Falling Oil Prices Weaken Greenback
The British Pound (GBP) staged a comeback against the US Dollar (USD) on Tuesday, gaining 0.14% as the greenback's strength waned due to softer-than-expected US jobs data and falling oil prices.
The June Job Openings and Labor Turnover Survey (JOLTS) showed a dip in job openings from 7.537 million to 7.359 million, below forecasts of 7.4 million. The limited layoffs suggest low firing and hiring rates, indicating a balanced labor market with one vacancy for every unemployed worker.
The trade deficit also narrowed in June, down from $-77.6 billion to $-73.3 billion, slightly above estimates of $-73 billion. An improvement in risk appetite is underpinning the GBP/USD pair as hopes for a US-Iran deal on reopening the Strait of Hormuz pushed oil prices lower.
The US Dollar Index (DXY) fell 0.04% to 99.94, dragged down by crude oil's recent positive correlation with the dollar. Traders also trimmed Fed-hawkish bets, expecting just about 20 basis points of tightening towards the end of the year, four fewer than a day ago.