My morning take on GBP/USD
The Jobs Situation Report will be released by the U.S. Bureau of Labor Statistics at 8:30 am on Friday. A “positive” report, in my opinion, will see labor demonstrating more wage leverage, spooking the markets into believing that inflation expectations should remained heightened. If interest rates compensate for inflation expectations, demand for US dollars or dollar-denominated securities may increase. To account for the opportunity costs of buying the British pound, the price of the GBP/USD may fall as the USD strengthens.
That said, I still expect that GBP/USD will exceed 1.16913 on Friday. As of 9:08 am, OANDA data has the currency pair trading at 1.16886.
U.S. versus the BRICs (Brazil, Russia, India, China, Venezuela, Saudi Arabia)
Currency Pair Broker Bid Broker Ask
USD/INR 79.5674 79.7024
RUB/INR 1.3025 1.3063
CNH/INR 11.4985 11.5205
USD/BRL 5.0587 5.0627
RUB/BRL 0.0828 0.0830
CNH/BRL 0.7311 0.7318
USD/VEF 781,544.0000 784,541.0000
RUB/VEF 12,794.1000 12,858.5000
CNH/VEF 112,944.0000 113,400.0000
USD/SAR 3.7452 3.7552
RUB/SAR 0.0613 0.0616
CNH/SAR 0.5412 0.5428
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