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GBP/USD records gains for the second trading day in a row. The US debt-ceiling deal favoured a positive market environment. Focus, this week, shifts to NFP data from May from the US.
The GBP/USD pair trades with gains at 1.2358 and benefits from the positive market sentiment fueled by the announcement on Sunday regarding a preliminary dal on the debt ceiling between US President Joe Biden and Republican House Speaker Kevin McCarthy. While neither the United States nor Great Britain will release relevant economic reports the pace of the session will be dictated by the market assessment of the mentioned agreement.
US stock futures surge is signaling a positive market mood. According to the proposed deal, the government would be allowed to borrow money without increasing the limit, which would be temporarily suspended until 2025. However, the proposal still requires approval from Congress, although US officials are hopeful that it will be passed.
The news of the deal was well-received by Wall Street futures, leading to a rise in their value and exerting downward pressure on the US Dollar.
For the rest of the week, the focus will shift to Nonfarm Payrolls (NFP) data from the US from May which is expected to hint at more pain in the American labor market. In that sense the outlook may have an impact on expectations from the next Federal Reserve Fed meeting in June and hence on the US Dollar price dynamics.
