Investors shift Fed rate hike expectations to October after weaker US jobs data and downward revisions for April and May.
The British Pound held near 1.3350 against the US Dollar on Friday, capping a weekly gain of over 1% as doubts grow over a Federal Reserve rate hike in September. Traders now favor October for the next move after June’s US jobs report missed estimates and April-May figures were revised downward by 74K jobs.
US labor market data showed resilience despite the miss, but the downward revisions and softer headline print prompted a reassessment of Fed policy. The Fed’s next inflation report, due July 14, and the upcoming FOMC minutes will be closely watched for further clues. Meanwhile, US Initial Jobless Claims are expected to rise to 219K from 215K for the week ending July 4.
In the UK, political uncertainty has kept Sterling below its 200-day Simple Moving Average at 1.3399. Despite fiscal commitments from policymakers, investors remain cautious ahead of key economic releases.