GBP/USD Fluctuates Ahead of Crucial Economic Data

The British Pound is hovering around 1.3495 against the US Dollar on Monday, as investors await key economic data releases this week.

Last Friday's disappointing US employment data, which showed a loss of 23K jobs in July, weighed heavily on the Greenback and allowed the GBP/USD to stay close to its recent highs.

With less than 45% chance of a Fed interest-rate hike in September now seen by markets, the USD's potential for recovery is limited. However, geopolitical uncertainty in the Middle East and around the Strait of Hormuz continues to support the US Dollar, while a potential rebound in Oil prices could also keep inflationary pressures elevated in the US.

This week will bring crucial data releases from both the UK and the US. On Thursday, investors will receive the preliminary Gross Domestic Product (GDP) estimate for the second quarter, with expectations of 0.4% growth. A surprise in these figures could determine whether the British Pound has enough support to establish a more sustained move above 1.3500.