Weaker-than-expected US Nonfarm Payrolls prompt traders to reduce Federal Reserve rate hike expectations, lifting the pound.
The British Pound surged above 1.3500 against the US Dollar after US Nonfarm Payrolls data fell short of expectations, easing pressure on the Federal Reserve to tighten further. GBP/USD reached 1.3506, its highest level in three weeks.
Prior to the release, markets had priced in a higher probability of another Fed rate hike, but the disappointing jobs report shifted sentiment. The pair had traded below 1.3400 earlier in the week amid stronger US economic data.
Traders are now reassessing the Fed’s policy path, with the dollar weakening broadly against major currencies.