GBP/USD rises above 1.2800 on disappointing US NFP and higher jobless rate.
The USD Index posts a fresh four-month low near 103.30 after a weak labor market report.
The BoE commenced its policy-easing campaign on Thursday.

The GBP/USD pair recovers at a strong pace from an intraday low of 1.2707 above the round-level resistance of 1.2800 in Friday’s New York session. The Cable discovers strong buying interest on disappointing United States (US) Nonfarm Payrolls (NFP) data for July, which boosts already firm speculation of Federal Reserve (Fed) September interest rate cuts.

Fresh payrolls came in lower at 114K than estimates of 175K and June’s reading of 179K. The Unemployment Rate jumps to 4.3%, the highest since November 2021, from expectations and the prior release of 4.1%. The report suggests the consequences of higher interest rates by the Fed on the labor market.

The NFP report cleared that risks have now widened to both factors of the Fed’s dual mandate. Meanwhile, annual Average Hourly Earnings have decelerated at as faster-than-expected pace to 3.6% from the estimates of 3.7% and the former release of 3.8%. Also, the wage growth measure rose at a slower pace of 0.2%. A steep cut on individuals’ finances will weaken overall spending.

GBP/USD BOUNCES BACK STRONGLY ABOVE 1.2800 AS US NFP DISAPPOINTS