GBP/USD continues challenging the 1.2000 mark

The market’s overall sentiment is affected by worries about potential Federal Reserve moves. On Wednesday, S&P Global will publish the final projections for the September PMIs. The GBP/USD pair encounters sellers around roughly 1.2100 as the USD is in high demand. The pair is trading at 1.2082 at the time of writing.

As speculative interest poured into the safe-haven US dollar on Tuesday, the GBP/USD exchange rate dropped to 1.2051, a seven-month low. As inflation remains too high, according to several Fed officials, and the labour market is still tight, the US Federal Reserve is expected to maintain its aggressive stance on monetary policy, which has boosted the value of the US dollar.

According to a survey released on Tuesday by the Bureau of Labour Statistics (BLS), there were 9.6 million job opportunities on the last working day of August, significantly more than the expected 8.8 million. As a result of the headline’s incitement of risk aversion, Wall Street tanked and government bond yields shot up, reflecting the worries of investors. IBD/TIPP Economic Optimism decreased from 43.2 in September to 36.6 in October, according to US data.

The September S&P Global Services and Composite PMIs, which will be released on Wednesday, will be closely watched by market participants. The Composite index is predicted to be at 47.2, while the UK Services PMI is anticipated to be affirmed at 46.8. The US will release the September ADP Employment Change, which is expected to be 1.53K, and the official ISM Services PMI, anticipated at 53.6 in September.

Mid-American afternoon trading for the GBP/USD pair encounters sellers at about the 1.2100 level. The next potential negative objective is the 1.2000 level, which is a significant psychological barrier. Significant stop losses should build up beneath the figure; if they are activated, the fall may quicken towards the 1.1900 figure.