Optimism over a potential US-Iran ceasefire weakens the USD, lifting the GBP/USD pair before key April nonfarm payrolls data.
The GBP/USD pair climbed to 1.3560 in Asian trading Friday, supported by fading demand for the USD as a safe-haven asset. Reports of a potential US-Iran peace deal, despite recent military tensions, weighed on the greenback.
Markets now await the US April nonfarm payrolls report, with consensus expecting 62,000 new jobs, a steep decline from March’s 178,000. The unemployment rate is projected to hold at 4.3%. The Bank of England recently held rates at 3.75%, signaling possible hikes if Middle East-driven inflation persists.
Traders are balancing geopolitical developments with upcoming labor data, which could influence Fed policy expectations.