Bullish
GBP/USD rebounds above 1.32 as weak US jobs data reduce Fed rate hike expectations.
The British Pound strengthened against the US Dollar following a weaker-than-expected US employment report for September. Non-farm payrolls increased by only 29,000, significantly below the anticipated 90,000, leading markets to scale back expectations for a Federal Reserve interest rate hike in October. This shift in sentiment provided support for GBP/USD, which recovered above the 1.32 level after dipping below it earlier in the week.
Key points
- GBP/USD rebounds above 1.32 as weak US jobs data reduce Fed rate hike expectations.
- US Non-farm payrolls increase by 29,000 in September, below the forecast of 90,000.
- Unemployment rate rises to 4.2% from 4.1%, indicating a slight softening in the labor market.
- Markets now assign approximately 79% probability to the Federal Reserve keeping interest rates unchanged at the October meeting.
Sources
AI-generated from public news sources. Not financial advice.
