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GBP/USD rises after weaker US labor data

Non-farm employment fell by 23,000 in July, while May and June job figures were revised down, supporting a weaker dollar.

Reported · Written up by our desk · Major Pairs

GBP/USD gained momentum after the release of the US labor market report for July on 7 August, as non-farm employment declined by 23,000 versus a Reuters-reported forecast for an increase of 80,000 jobs.

The US dollar weakened broadly in response to the data, which also included downward revisions to employment figures for May and June, according to the Bureau of Labor Statistics.

The move followed earlier guidance from the Bank of England, which kept its interest rate at 3.75% on 30 July, and flagged inflation risks tied to energy price volatility.

From a technical standpoint, the pair broke above a contracting-triangle pattern and is attempting to hold above key levels, with the next upside target cited near 1.3555 if the breakout sustains, though follow-through may depend on additional US economic releases, Action Forex noted.

Latest closeGBP/USD 1.345 ▼0.1%

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