Cooling US jobs data and lower oil prices reduce expectations for Federal Reserve rate hikes, weakening the USD.
GBP/USD climbed to 1.3390 in Asian trading, marking its ninth straight session of gains. The rally follows a pullback in Fed rate hike expectations after softer-than-expected US employment data for April through June reduced inflationary pressures.
Market sentiment shifted as job additions fell short of Wall Street forecasts, while a drop in crude oil prices—driven by OPEC+ production increases and a US-Iran deal—eased broader price concerns. Fed Governor Christopher Waller’s hawkish remarks and resilient US economic data may limit further USD declines.
Waller’s speech, rated 7.1/10 on the FXS Speechtracker, emphasized flexible forward guidance and the Fed’s commitment to its 2% inflation target, reinforcing a balanced policy outlook.