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With a lack of domestic data to support it, the pound’s movements are now driven by risk sentiment and U.S. economic data
Analysts at Monex Europe noted in a report that, with no domestic UK economic data scheduled for Wednesday, the pound’s movements will be driven primarily by risk sentiment and the performance of the dollar, as market focus has shifted to U.S. economic data. They stated that the major drivers will come from the U.S., including the ADP private-sector employment report, followed by the Job Openings and Labor Turnover Survey (JOLTS) and the ISM Services Report. Analysts believe that if U.S. data comes in stronger than expected, the pound could fall below the 1.34 level. Currently
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