GBP/USD struggles to build on Wednesday's gains and trades in negative territory below 1.3400 early Thursday. The data from the UK showed that the ILO Unemployment Rate rose to 4.7% in the three months to May, while the Claimant Count Rate remained steady at 5%.

The Treasury secretary also stated his preference that Powell step down from the Fed entirely when his term ends. “Traditionally, the Fed chair also steps down as a governor."

The US dollar recovers as Powell dismissal fears recede and market yields climb after Trump's clarifying statements.

President Trump has renewed calls for Federal Reserve Chair Jerome Powell to resign, criticizing the Fed for not cutting interest rates.

US stocks swung sharply on Wednesday amid escalating speculation that President Donald Trump was preparing to fire Federal Reserve Chair Jerome Powell. The move raised alarms about the central bank’s independence and roiled financial markets before the White House came out and denied the media reports.