GBP/USD to avoid a break below 1.30 support on Ukraine optimism – ING

GBP/USD trades in positive territory near 1.3050. The pair has shrugged off the upbeat UK employment data as remains at the mercy of the Ukraine crisis. Positive updates on this front could avoid a break under 1.30, economists at ING report.

Jobs data endorse BoE hike

“This morning’s UK jobs report for the month of February continued to signal tightness in the labour market and accelerating wage-growth dynamics, which support the prospect of another hike by the BoE on Thursday. A 25bp hike was already fully priced in by the market, so the jobs data had no positive impact on GBP this morning.”

“The pound is set to remain entirely driven by sentiment on the Russia-Ukraine war, where the recent optimism can help GBP/USD avert a break below the key 1.30 support but will likely continue to put upward pressure on EUR/GBP, given the euro’s higher beta to the conflict.”