The UK election results indicate a potential landslide victory for the UK Labour Party, positioning them for a majority win. This outcome could lead to the election of the first non-Conservative Prime Minister in 14 years. Meanwhile, the US Nonfarm Payrolls (NFP) data release on Friday is set to wrap up the trading week.
GBP/USD trading remained subdued on Thursday as traders awaited final results from the UK Parliamentary Election. US markets were closed on Thursday, limiting overall market activity during the American trading window. However, markets are expected to resume on Friday.
The UK appears poised to elect Keir Starmer from the Labour Party as their next Prime Minister, according to initial tallies. In the US, investors are anticipating softer economic data, with hopes for rate cuts from the Federal Reserve. The upcoming US NFP figures are projected to decrease to 190K in June from the previous month’s 272K, while the Unemployment rate is expected to remain at 4.0% month-on-month.
As for GBP/USD technical analysis, the currency pair is showing signs of a recovery after a recent decline, with support near the 200-day Exponential Moving Average at 1.2610. Despite facing resistance above 1.2800, there has been a lack of significant downward movement towards the 1.2300 handle.
Overall, the UK election results and the upcoming US NFP data are key factors influencing market sentiment and currency movements.