GBP/USD dropped below 1.3400 as a strong US jobs report fueled hawkish Fed expectations, leaving the pair testing critical support at the 1.3362 moving average cluster.
October US Nonfarm Payrolls rose 165K versus 65K expected, with September revised up to 60K, and the jobless rate fell to 4.1%. This pushed December Fed hike odds from 67% to nearly 77%, driving the Pound down almost 0.60% to 1.3371 after peaking near 1.3463. Failure to break decisively above 1.3500 despite a BoE rate hike amplified the fall, though the BoE's hint at another hike limits the downside.
A much stronger-than-expected US jobs report (165K jobs versus 65K forecast) led markets to raise the odds of a December Fed rate hike to nearly 77%, pushing the Pound down almost 0.60% to around 1.3371.
The pair is holding just above the 50/100/200-day moving average cluster near 1.3362, which acts as immediate support. Resistance sits at the 1.3381 trend line break, with further barriers at 1.3684 and 1.3855, and a structural floor near 1.3235.
The blowout October jobs report, 165K new jobs versus 65K expected plus an upward revision of September to 60K, led investors to raise December Fed rate hike odds from 67% to nearly 77%. A hawkish repricing of Fed policy strengthens the Dollar, as seen in the Pound's near 0.60% drop. St. Louis Fed President Musalem's comments on persistent inflation concerns reinforce the hawkish backdrop.
A much stronger US Nonfarm Payrolls report showing 165K jobs added in October against 65K expected, which lifted the market-implied odds of a December Fed rate hike to nearly 77%.
Sterling fell nearly 0.60% against the Dollar, giving back the boost from the BoE rate hike after failing to break above 1.3500. However, the BoE hinted at another potential rate increase, and upcoming UK GDP figures and BoE speeches next week could steady the currency, keeping the medium-term picture less one-sided.
No, the BoE rate hike was a tailwind for the Pound, but the gains faded after the pair failed to break above 1.3500 and the strong US jobs report lifted expectations for further Fed tightening. The BoE also hinted at another possible rate increase.
The British Pound fell nearly 0.60% against the US Dollar after October Nonfarm Payrolls surged by 165,000, significantly beating the 65,000 estimate. This robust labor market data pushed the probability of a December Federal Reserve rate hike to nearly 77%, overshadowing recent Bank of England policy tightening.
A much stronger-than-expected US jobs report (165K jobs versus 65K forecast) led markets to raise the odds of a December Fed rate hike to nearly 77%, pushing the Pound down almost 0.60% to around 1.3371.
The pair is holding just above the 50/100/200-day moving average cluster near 1.3362, which acts as immediate support. Resistance sits at the 1.3381 trend line break, with further barriers at 1.3684 and 1.3855.