• GBP/USD has given a downside break of 1.1942-1.1957 on expectations of muted UK job data.
• Dismal Average Hourly Earnings will bring more pain for the pound bulls.
• The DXY has overstepped 107.50 comfortably despite a light calendar week.

The GBP/USD pair has slipped after displaying back and forth moves in a narrow range of 1.1942-1.1957 in the Asian session. The cable has delivered a downside break of the above-mentioned range as investors don’t see any outperformance in the UK employment data.

As per the market consensus, the Unemployment Rate is expected to remain stable at 3.8%. No downside deviation in the jobless rate is going to impact the sentiment of the market participants. The Bank of England (BOE) is bound to bring price stability and a stable jobless rate won’t allow the central bank to tighten policy further unhesitatingly.

Apart from that, the Average Hourly Earnings data will be of significant importance. The economic data is expected to improve minutely by 10 basis points above the prior print of 4.2%. In comparison with the responsiveness of the inflation rate, an improvement in earnings data by peanuts will dampen the market moods. The households will face more impact on their paychecks, which will escalate recession fears.

On the dollar front, the US dollar index (DXY) has established above 107.50 despite a light calendar week. The probability of a 100 basis point (bps) rate hike in July has dropped below 30% from nearly 90% earlier in the week. This has trimmed the inflation expectations significantly.