The GBP/USD rose in value on Aug. 28, reaching a one-week high in early trade and then later paring these gains.
GBP/USD hits 1-week high
The currency pair reached 1.6614 in European morning trade, according to Investing.com. This represented the highest value for the GBP/USD since Aug. 20. During this point in the session, market participants were anticipating the U.S. economic reports involving gross domestic product and jobless claims.
Investors also processed reports showing that Germany suffered a 2,000-person increase in its jobless last month, which was far higher than the 5,000 drop that was expected, the media outlet reported.
US releases strong economic reports
The GBP/USD then fell to 1.6576 during U.S. morning trade, Investing.com reported. As a result, the currency was 0.01 percent higher for the session. Robust U.S. data helped provide support for the greenback. Labor Department figures showed that during the week ending Aug. 22, jobless claims fell 1,000 to 298,000. This result beat the predictions of analysts, who forecast these applications would rise 1,000 to hit 300,000.
In addition, the U.S. Commerce Department released a report showing the nation’s gross domestic product rising an estimated 4.2 percent in April, May and June. This figure represented an upward revision from the previous figure of 4 percent. After gathering additional information, the Commerce Department plans to release one last estimate of the nation’s second-quarter GDP in growth.
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The robust figures the U.S. government released recently were in-line with the comments Janet Yellen made at the Federal Reserve’s annual meeting in Jackson Hole, Wyoming, that both the U.S. economy – and the jobs situation – are getting stronger, the media outlet reported.
Market participants around the world have been closely scrutinizing the statements of Fed officials to get a better sense of when the central bank will hike its benchmark interest rates. Previously, Yellen stated that the unemployment rate and the consumer price index are both crucial, and their value have an impact on the financial institution’s stimulus.
Global investors largely focused on the Fed’s tapering of quantitative easing, but the central bank has trimmed these purchases significantly, leaving them to wonder when the organization will hike its borrowing costs.
Market participants involved in forex trading might benefit from watching these developments, as they could have a major impact on the future value of the GBP/USD.
The post GBP/USD Fluctuates amid Global Economic Reports appeared first on | HY Markets Official blog.
