GBP rallies on labor data

Currencies

The U.S. dollar continues to assert its strength, advancing 0.3% against the Japanese yen, reflecting robust demand for safe-haven assets.

Meanwhile, the Australian dollar is under pressure, with AUD/USD struggling following the Reserve Bank of Australia’s latest policy decision.

GBP/USD

The British pound saw notable gains after UK labor market data exceeded expectations.

• UK Unemployment Change (Jan 2025): 22K (Forecast: 10K, Previous: 0.7K)
• UK Employment Change (3M/3M): 107K (Forecast: 48K, Previous: 35K)
• UK Unemployment Rate (Dec 2024): 4.4%, in line with prior readings but slightly better than expectations of 4.5%
• Average Weekly Earnings YoY (Dec 2024): 6.0% (Forecast: 5.9%, Previous: 5.6%)

The pair extended gains as wage growth and hiring activity signaled continued labor market resilience, reinforcing expectations that the Bank of England may maintain a cautious approach to rate cuts.

Commodities

Gold remains well-supported, holding above $2,900 per ounce in early European trading.

• Market sentiment remains cautious as global trade tensions escalate, with renewed focus on U.S. trade policies under President Trump.
• Expectations of a Federal Reserve rate cut have strengthened following softer-than-expected U.S. retail sales and mixed inflation data, underpinning demand for non-yielding assets like gold.
• A rebound in U.S. Treasury yields has limited gold’s upside for now, but the overall bias remains bullish.

Oil

Crude oil benchmarks are trading slightly higher on Tuesday, extending their positive momentum:

• WTI crude (West Texas Intermediate) rose to $71.47 per barrel, up from Monday’s $71.30 close.
• Brent crude advanced to $75.23 per barrel, climbing from its previous session’s $75.08 level.

The oil market remains sensitive to geopolitical factors, supply outlooks, and broader risk sentiment, with traders watching for updates on global energy demand and production shifts.