GBP/USD gets more buying on Tuesday and goes above 1.2100 during the European session.

The US dollar goes down for a second day, which helps the GBP/USD pair. The market’s initial reaction to Friday’s great US jobs reports for the month quickly fades, which hurts the safe-haven greenback.

Expectations that the Fed will keep tightening its policies aggressively and a rise in the yields on US Treasury bonds should keep the USD from falling too much. Prices on the market show a 70% chance that the Fed will raise rates by 75 basis points in September.

In the meantime, The Bank of England’s pessimistic assessment of the British economy could discourage bullish bets on the pound. Last week, the UK’s central bank warned of a recession in the fourth and fifth quarters.

The absence of market-moving economic news from the UK or the US suggests being careful before betting on a further rise. The USD and GBP/USD could still be affected by US bond rates and how the market feels about risk.
US Nonfarm Productivity and Unit Labor Costs will be public later today. There will be news about the IBD/TIPP Economic Optimism Index and the NFIB Business Optimism Index.

Trade Idea :

The dollar could go down if headlines or core reports had terrible news.