British Pound Gains Capped as Fiscal, Geopolitical Risks Persist

4:40 AM ETDeveloping

Business Desk

In Short: Despite weak US employment data, the US dollar remains resilient due to rising rate expectations and inflation concerns.

Adding to the Greenback's troubles, recent economic data highlighted a slowdown in US private-sector employment for August, where ADP figures showed only 38,000 positions added against an expected 47,000.

However, firming US Federal Reserve rate-hike expectations and inflation risks stemming from higher energy prices could act as a tailwind for US bond yields, capping gains for the British Pound.

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Adding to the Greenback's troubles, recent economic data highlighted a slowdown in US private-sector employment for August, where ADP figures showed only 38,000 positions added against an expected 47,000.
That said, firming US Federal Reserve rate-hike expectations and inflation risks stemming from higher energy prices could act as a tailwind for US bond yields.

Sources

FXStreetlink