GBP/USD flirts with session lows, 1.3800 mark remains in sight post-UK jobs data
- GBP/USD edged lower for the second successive day amid a modest USD strength.
- The risk-off impulse was seen as a key factor that benefitted the safe-haven USD.
- Stronger UK jobs report failed to impress bulls or lend any support to the major.
The GBP/USD pair remained depressed near the 1.3815-10 region, or session lows and failed to gain any respite from better-than-expected UK jobs data.
Having struggled to make it through the 1.3875-80 region, the GBP/USD pair edged lower on the first day of a new week and witnessed some selling for the second successive session on Tuesday. The downtick was exclusively sponsored by a modest US dollar strength, which benefitted from reviving safe-haven demand.
Investors remain worried about the economic fallout from the fast-spreading Delta variant of the coronavirus. The market concerns were fueled by disappointing Chinese macro data on Monday. This, along with political tension in Afghanistan, weighed on investors' sentiment and drove some haven flows towards the USD.
Meanwhile, the GBP/USD pair maintained its offered tone following the release of the UK jobs report, which showed that the unemployment rate unexpectedly edged lower to 4.7% during the three months to June. This was accompanied by strong wage growth data, though did little to impress bulls or provide any impetus to the major.
Market participants now look forward to the US economic docket, highlighting the release of monthly Retail Sales data later during the early North American session. This will be followed by Fed Chair Jerome Powell's speech, which might influence the USD and produce some trading opportunities around the GBP/USD pair.
Technical levels to watch