The Pound US Dollar (GBP/USD) exchange rate is rangebound this morning ahead of US non farm payroll figures scheduled to be released this afternoon.
At the time of writing, the Pound US Dollar exchange rate is trading at around $1.3280 and is lacking direction.
The US Dollar (USD) is rising against the majority of its peers this morning ahead of the highly influential non farm payrolls.
The non farm payrolls are expected to show 550K jobs were added to the US economy in November, up from October’s 531K.November’s US unemployment rate is forecast to decrease from 4.6% to 4.5% which suggests further improvement in the job market for a second month, predicting the lowest percentage since the pandemic began in March 2020.
‘The October payrolls report helped to reaffirm the Federal Reserve’s decision a few days before to set the ball rolling on tapering its $120bn a month asset purchase program.’
Thus, further progress predicted in the November data will provide additional support to the US economy and support the case for the Federal Reserve to accelerate tapering its bond-buying programme and raise interest rates.
The Pound (GBP) is falling this morning as the newly-identified coronavirus strain, Omicron, continues to dampen Sterling’s appeal.
Despite the UK government securing an investment of £100M into Omicron vaccine research and manufacturing, GBP investors are cautious, causing downside pressure on the Pound.