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Pound edges higher as softer US jobs keep dollar on back foot

GBP/USD was last seen around 1.3467 after July ADP Employment Change undershot forecasts, with Nonfarm Payrolls due Friday.

Reported · Written up by our desk · Major Pairs

The British pound rose about 0.12% on Wednesday versus the US dollar, as the dollar logged back-to-back sessions of losses following softer than expected US jobs data. GBP/USD traded around 1.3467, with the pair holding a bullish bias on technical levels.

FXStreet said the July ADP Employment Change report came in at 44K, down from 98K and below expectations for 70K. The report showed education and health services adding 36K jobs, while leisure and hospitality cut 11K, and the ISM Services PMI in July stayed in expansion at 54.1, below the 54.5 forecast.

Markets are now focused on Friday's Nonfarm Payrolls, where FXStreet noted expectations for 80K jobs added in July and an unemployment rate of 4.2%. The outlet also cited Fed commentary, including Neel Kashkari saying it is time to begin slowly increasing rates, and Kansas City Fed chief Jeffrey Schmid arguing policy remains too tight to address inflation concerns.

Geopolitics also contributed to currency sentiment, with FXStreet pointing to de-escalation between the US and Iran and resumption of talks as a tailwind for risk-sensitive currencies like sterling. In the UK, it added that S&P Global data showed the services sector expanded last month after contracting in June.

Latest closeGBP/USD 1.345 ▼0.3%

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