Sterling eased to about 1.3314 against the US Dollar in Monday’s European session, staying within Friday’s range and leaving GBP/USD in a holding pattern ahead of UK labour market and inflation releases due on Tuesday and Wednesday. Forecasts point to the ILO Unemployment Rate edging up to 5% from 4.9% in the three months to July, while Average Earnings Including Bonuses is seen easing to 3.8% year on year from 3.9%. Inflation projections call for headline CPI at 3.49% y-o-y, with core CPI at 2.74% and Services CPI at 3.71%, data that could shift Bank of England rate expectations.
US Dollar Strength and Eurozone Developments
The US Dollar was firmer, with French borrowing costs elevated as protests over living costs fed into sovereign markets; the 10-year French yield held around 4.87% after Friday’s rise.
GBP/USD Technical Analysis
Technically, GBP/USD was near 1.3317 and remained above the 20-day EMA at 1.3285, while RSI (14) sat around 51. Support is flagged at 1.3285 and then 1.3140, with resistance at Friday’s high of 1.3372.
