GBP/USD regains 1.2400 after mixed UK jobs data

GBP/USD is extending its recovery above 1.2400 in the early European morning. Pound Sterling bulls cheer elevated UK’s pay growth level, fanning BoE rate hike bets. The US Dollar remains on the back foot amid a cautious market mood.

Contrary to that, UK Finance Minister was very confident about UK’s economic progress. UK Hunt cited that the British economy will outperform this year. Also, the economy will avoid recession.

S&P500 futures have remained choppy in the Asian session as investors s worried about quarterly results from banking and technology stocks, portraying a cautionary market mood. The US Dollar Index (DXY) has surrendered the crucial support of 102.00 as investors are digesting fears of one more rate hike from the Federal Reserve (Fed), which is expected to get announced in May.

Fed chair Jerome Powell eyes one more rate hike as United States core inflation rebounded in March, indicating extreme stubbornness due to the robust labor cost index. Meanwhile, retail demand for costly products has dropped as households are avoiding the higher cost of financing.

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