- The GBP/USD pair is finding support from the cautious comments of Bank of England officials.
- Bank of England’s Catherine Mann has expressed concern over the ongoing risk of “long-distance” inflation and continuous price pressures.
- The release of the September US non-farm payroll report will be delayed as the Labor Bureau has temporarily halted operations.
GBP/USD has seen gains for the fifth consecutive day, trading around 1.3480 during the Asian session on Thursday. The increase can be attributed, in part, to the support the Pound Sterling (GBP) is receiving from comments made by several Bank of England (BoE) officials.
On Wednesday, BoE policymaker Katherine Mann pointed out that the risk of prolonged inflation is a genuine concern, emphasizing ongoing price pressures. She suggested that it might be wise to pause any interest rate hikes for the time being.
Meanwhile, BoE Deputy Governor Clare Lombardelli warned that inflationary shocks should not be viewed as merely temporary. She indicated that while the current uptick in inflation could be linked to one-off events, the ramifications might be more enduring.
The GBP/USD pair continues to find backing as the US dollar (USD) struggles, particularly following the government shutdown on Wednesday when Congress was unable to reach a funding agreement. Additionally, the September US Non-Farm Payroll (NFP) report will not be published on Friday as the Labor Bureau has suspended its operations.
According to the ADP Employment Change Report released Wednesday, private sector employment decreased by 32,000 in September, while annual wage growth rose by 4.5%. This number fell short of market predictions of 50,000, with August’s figure being revised down from an increase to a decrease of 3,000.
