GBP/USD advances around 1.3630 on Friday at the time of writing, up 0.54% on the day, benefiting from broad US Dollar weakness following the release of the US employment report.
The Bureau of Labor Statistics (BLS) reported that Nonfarm Payrolls (NFP) increased by 115K in April, well above market expectations of 62K
March’s figure was also revised higher to 185K from the previously reported 178K. Meanwhile, the Unemployment Rate remained steady at 4.3%, in line with forecasts. Annual Average Hourly Earnings growth came in at 3.6%, below the 3.8% expected, easing inflation concerns and supporting expectations that the Federal Reserve (Fed) could still move toward monetary easing in the coming months.
Investors are also favoring risk-sensitive assets amid persistent optimism surrounding discussions between the United States (US) and Iran, despite reports that the US military carried out airstrikes targeting several tankers near the Strait of Hormuz. As a result, the US Dollar Index (DXY) falls toward 97.90 despite the resilience of the US labor market. On the UK side, the Pound Sterling (GBP) remains relatively stable despite the first results from local elections in the United Kingdom (UK).