The Pound Sterling (GBP) climbs above 1.2500 and hits a new YTD high at 1.2525, on risk on impulse in the FX space and overall US Dollar (USD) weakness. Economic data released in the United States (US) flashes the economy is slowing down, a headwind for the greenback. At the time of writing, the GBP/USD is trading at 1.2499, above its opening price by 0.72%.

GBP/USD stays positive, despite sentiment shifting sour

Wall Street reversed its course and turned red. The US JOLTs reports, sought by the US Federal Reserve (Fed) as they monitor labor market data, dropped to their lowest level in two years. Figures showed a decrease of 32K to 9.9 million job openings on the last day of February, its lowest since May 2021. Meanwhile, Factory Orders in the US fell for two consecutive months, printing a 0.7% MoM plunge, worst than an estimated contraction of 0.5%, according to the US Commerce Department.

On the data release, the GBP/USD increased from around 1.2465 to its new YTD high at 1.2525. The Fed has constantly reiterated the tightness of the labor market, and a decrease in job vacancies, could help inflation to continue its downward trajectory. Despite OPEC’s latest crude oil production cut, that could make Fed’s job easier.

On Wednesday, the ADP Employment Change report, followed by jobless claims on Thursday, and the US Nonfarm Payrolls data, would update the effect of higher rates on the labor market.

On the UK front, Bank of England (BoE) speakers had been crossing the wires. Of late, the BoE Chief Economist Huw Pill commented that his May rate decision would be focused on “data flow and its interpretation in the forecast.” Earlier, Sylvana Tenreyro, a BoE Monetary Policy Committee (MPC) member, said that a “looser stance is needed to meet the inflation target.”