Weaker-than-expected US payrolls data sparks Fed rate cut bets, lifting the British Pound against the Dollar.
The British Pound climbed above 1.3500 against the US Dollar after US Nonfarm Payrolls fell by 23K in July, missing forecasts of an 80K gain. June’s figures were also revised down to 20K from 57K, signaling labor market weakness.
The US Unemployment Rate unexpectedly dipped to 4.1%, but the soft jobs data weighed on the Dollar and Treasury yields. The US Dollar Index dropped 0.45% to 99.50, while the 10-year Treasury yield fell to 4.60%.
Markets now price a 42.1% chance of a Fed rate hike in September, down from 67% a week ago. Traders await next week’s US CPI data for further direction.