GBP/USD lost ground as US Dollar surged after blockbuster US NFP data

GBP/USD extends losses to near 1.2610 as Fed rate cut in March appears unlikely

GBP/USD continues its decline for the second consecutive session, edging lower to around 1.2610 during the Asian trading hours on Monday. The Pound Sterling (GBP) faces challenges as the US Dollar (USD), measured by the US Dollar Index (DXY), reaches an eight-week high. This strength in the USD is fueled by positive market sentiment as a March rate cut by the Federal Reserve appears unlikely. The sentiment is based on a promising labor market report released on Friday.

On Friday, the US Bureau of Labor Statistics (BLS) reported that Nonfarm Payrolls added 353,000 jobs in January, surpassing the previous reading of 333,000 and exceeding the market consensus of 180,000. Additionally, Average Hourly Earnings (YoY) rose by 4.5%, surpassing the expected 4.1% and the previous 4.4% rise. Traders will continue to monitor economic indicators, such as the ISM Services Employment Index, scheduled for release on Monday, for further insights into the state of the US labor market and potential implications for monetary policy. Read more…

GBP/USD Weekly Forecast: Pound struggles to maintain momentum near weekly lows

The Pound Sterling (GBP) traded firmly against the US Dollar (USD) following a two-week sluggish momentum. Mid-week, GBP/USD buyers took back charge even as both the US Federal Reserve (Fed) and the Bank of England (BoE) pushed back against early interest rate cut expectations. However, the pair turned south on Friday following the release of the US Nonfarm Payrolls (NFP) report.

GBP/USD managed to hold its ground, having tested the weekly low near the 1.2600 region. The pair enjoyed two-way business but remained confined within a familiar range at around the 1.2700 level. The volatile trading around the pair could be attributed to a bunch of top-tier US economic data combined with the Fed and BoE policy announcements. Read more…