Dollar gains despite payroll revision

• Markets look to PPI numbers

Yesterday's currency recap

The early USD losses were erased by the close of European trade despite payroll revisions coming in worse than expected – the revision of -911,000 was in fact the worst reading in the last 26 years.

Both GBPUSD and EURUSD resistance levels held with markets seemingly at the peak of rate cut expectation by the Fed this year.

JPY gained throughout the session after reports indicated that Bank of Japan policymakers may still pursue an interest rate hike this year, even amid prevailing political uncertainties.

Today's GBP rates

Key data points

What we think

USD is marginally weaker this morning after a robust performance yesterday, while GBP gained strength amid renewed risk appetite as European equity markets started higher.

PPI inflation numbers out this afternoon as we look for evidence of tariff pass through into prices. Markets are already pricing nearly three rate cuts this year and a weak number will firm this up, which could see a retest of GBPUSD and EURUSD resistance levels. Otherwise an overshoot should continue yesterday's USD gains.

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