June US Nonfarm Payrolls missed forecasts at 57K, easing Fed rate hike bets and lifting GBP/USD from seven-month lows.
The Pound Sterling climbed against the US Dollar after June Nonfarm Payrolls printed at 57K, well below the 110K consensus. The softer-than-expected jobs data fueled speculation the Federal Reserve may pause further tightening, dragging the Dollar lower across major pairs.
GBP/USD held near seven-month lows before the release, with technical support preventing deeper declines. The pair’s recovery was driven by Dollar weakness rather than Sterling strength, as political uncertainty in the UK limits upside. Labour leadership contest frontrunner Andy Burnham’s fiscal discipline pledges have eased some concerns but failed to spark a sustained rally.
Markets remain cautious amid a leaderless UK government and the Bank of England’s potential rate hike considerations. The Pound’s rebound remains fragile, dependent on external factors rather than domestic fundamentals.