GBP/USD Holds Steady: Key UK Labor Data Awaits

GBP/USD holds ground after registering modest gains in the previous session, trading around 1.3430 during the Asian hours on Tuesday. The pair moves little as traders adopt caution ahead of labor market data from the United Kingdom (UK) due later in the day. Focus will shift toward the UK Consumer Price Index (CPI) and Retail Sales figures for December later in the week. The ILO Unemployment Rate is forecast to ease to 5% from 5.1% in the three months to November, the highest since early 2021. Meanwhile, Average Earnings Including Bonuses are expected to slow to 4.6% from 4.7%. The GBP/USD pair could further gain ground as the US Dollar (USD) comes under pressure from rising uncertainty over the US–Greenland issue. US President Donald Trump said on Saturday that 10% tariff would be levied on goods from EU members Denmark, Sweden, France, Germany, the Netherlands, and Finland, as well as Britain and Norway, effective February 1, until the US is permitted to purchase Greenland. In response, European Union ambassadors agreed on Sunday to step up efforts to deter the tariffs, while also preparing retaliatory measures if the duties are implemented.