Cooling US labor market data reduces Fed rate hike bets, lifting GBP/USD to $1.3360 while UK political shifts add uncertainty.
The GBP/USD pair climbed to $1.3360 in early European trading Friday, supported by a softer-than-expected US Nonfarm Payrolls report. The data eased expectations for a near-term Federal Reserve rate hike, weakening the USD and boosting the pair.
Markets now price a 52% chance of a September Fed hike, down from 66% before the jobs release. UK political developments, including Keir Starmer’s resignation and Andy Burnham’s fiscal stance, are under scrutiny for potential budget shifts.
Technically, GBP/USD remains below its 100-day SMA near $1.3410, with resistance at the upper Bollinger band around $1.3468. Support lies at the middle Bollinger band.