Important Events Today:

08:30 UTC: USD – Composite PMI Index.

14:00 UTC: USD – ISM Non-Manufacturing PMI.

The GBPUSD pair is trading below the 1.2800 mark after a brief bullish impulse propelled the pair to its highest levels since mid-March. Overall market sentiment has shifted towards dollar offerings as hopes for a Federal Reserve rate cut are pushed back to November.

UK retail sales, according to BRC Like-For-Like data for the year ending in May, grew less than expected, coming in at 0.4% year-on-year compared to a forecast of 1.2%. UK retail sales data is struggling to recover after a decline of -4.4% in the previous period. In the US, the JOLTS job openings index for April fell to 8.059 million, below the previous revised figure of 8.355 million and lower than the forecast of 8.34 million. Amid the labor market’s failure to meet broad market expectations for rate cuts, risk sentiments weakened on the back of disappointing data.

For the remainder of the week, the economic calendar remains sparse, leaving investors to digest new US employment data, with Friday bringing another round of monthly non-farm payroll (NFP) figures. ADP employment change for May is expected to drop to 173k from the previous 192k, while Friday’s NFP is anticipated to jump to 190k from the previous 175k.

Recommendations: Trade predominantly buy orders at the price level of 1.2820. Consider sell orders at the price level of 1.2735.