The Pound Sterling is stable during the North American session, holding above an important technical level due to a strong US jobs report. Currently, the GBP/USD exchange rate is 1.3638, influenced by potential tax hikes in the UK. During European trading hours, the Pound dropped to about 1.3580 against the US Dollar. This decline occurred while the US Dollar traded calmly, with upcoming US tariff decisions set for July 9 creating anticipation.

Asian Trading Hours

In Asian trading hours, the GBP/USD pair fell for the second session, trading near 1.3620. Despite this dip, the daily chart indicates a bullish trend as the pair remains within an upward channel. The AUD/USD dropped to around 0.6480 due to rising demand for the US Dollar. Meanwhile, EUR/USD fell below the 1.1700 support level amidst growing trade worries. Gold prices rose to about $3,340 per troy ounce, benefiting from reduced US Dollar strength. Ripple (XRP) also saw gains, trading at approximately $2.28, supported by positive market sentiment. Retail sales in the Eurozone fell by 0.7% month-on-month in May, raising concerns about possible GDP contraction between April and June.

North American Markets Stability

The Pound has remained stable in North American markets, staying above a crucial technical level despite some pressure. Earlier, it dipped when European markets were open, but it has not strayed far from the overall upward trend seen in recent weeks. The main pressure on Sterling seems to come from the domestic situation rather than short-term demand or speculation. Strong US employment data has overshadowed UK concerns, particularly about potential tax increases, which adds downward pressure, especially with an uncertain political climate at home. Traders should carefully monitor this support area. There hasn’t been a clear break lower, suggesting the bullish trend could continue unless momentum shifts quickly. Since the pair is still trading within an upward channel, this offers technical reassurance, but sentiment can change rapidly, especially near significant economic announcements. During the Asia session, the decline continued but was not drastic. Price movements remained steady, indicating that traders are still working within established ranges. However, sensitivity to news that supports the Dollar is evident—any sign of a more hawkish Federal Reserve may push this pair down in the short term. In the meantime, commodity-related currencies have weakened. The Australian Dollar, for example, struggled to maintain its value and dropped as the strength of the US Dollar returned. This decline isn’t surprising given the recent surge in demand for US currency. The lower value of AUD/USD signals that traders are seeking safety in the Dollar, not necessarily due to negative sentiment elsewhere, but due to pressing deadlines and data importance. The EUR/USD pair shows a similar trend, breaking below the critical 1.1700 level, which had remained stable for several weeks. Fresh trade tensions further pressured this level. European economic data also disappointed, with Eurozone retail sales down 0.7% month-on-month in May, suggesting GDP could shrink in the second quarter. Such data makes central banks more cautious, affecting market sentiment. On the commodity front, Gold tried to climb higher as Dollar gains slowed. Although the rise to $3,340 per troy ounce may seem significant, it aligns with typical reactions to waning momentum in currency markets. It indicates traders are not yet fully convinced of a clear trend reversal, as they continue to hedge their positions with metals amid currency uncertainties. In the realm of digital assets, Ripple has continued to gain, rising to $2.28, supported by positive sentiment from earlier trading sessions. Despite broader market caution, crypto markets have surprisingly remained stable. While this resilience shouldn’t be relied upon for long-term trends, it shows active trading, especially among retail traders reacting to news headlines. These recent moves appear to be short-term tactical adjustments. Strong US data has reset expectations, potentially strengthening the Dollar’s position. With important deadlines such as July 9 approaching, we expect increased volatility, especially as the weekend approaches. Near-term technical levels could break more quickly than expected if sentiment shifts even slightly, and with ongoing political risks in the UK, Sterling-related exchanges will remain sensitive. Create your live VT Markets account and start trading now.

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