- GBP/USD edges lower for the second straight session amid fears of a no-deal Brexit.
- Mixed UK jobs report did little to impress bulls or provide any meaningful impetus.
The GBP/USD pair held on to its mildly weaker tone and remained below the key 1.30 psychological mark post-UK macro data.
The pair added to the previous session’s losses and witnessed some follow-through selling for the second consecutive session on Tuesday amid renewed concerns that Britain might crash out of the European Union (EU) at the end of the transition period.
It is worth recalling that market worries about a no-deal Brexit resurfaced on Monday following a statement from the UK Prime Minister Johnson’s spokesman, saying that Britain would not be threatened into following EU rules to win a free trade agreement.
As investors digested the latest Brexit-related headlines, the British pound was further weighed down by Tuesday’s slightly disappointing UK employment details, showing that average earnings eased more than expected during the three months to December.
The negative reading, to some extent, was negated by an unexpected decline in the number of people claiming unemployment-related benefits for January. Meanwhile, the unemployment rate held steady at 3.8% but did little to provide any meaningful impetus.
With today’s UK economic data out of the way, the incoming Brexit-related news/developments might continue to play a key role in influencing the sentiment surrounding the sterling and produce some meaningful trading opportunities.
Technical levels to watch
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