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GBP/USD slips as markets pare Fed odds after weak US jobs data
CME FedWatch shows September rate odds for holding steady rose to 50.0% from 30.4% a month ago after July nonfarm payrolls fell 23,000.
GBP/USD traded marginally lower around 1.3500 in the European session, as the US dollar edged higher and investors trimmed bullish bets on the Federal Reserve for its September meeting, according to FXStreet.
The pullback followed weak US labor data, with ING characterizing the July jobs report as surprisingly soft. Nonfarm payrolls fell 23,000 on the month, while revisions added 103,000 in downward changes to prior months, pulling the 3-month payroll average gain down to about 20,000.
CME FedWatch indicated the odds of the Fed holding rates steady in September increased to 50.0% from 30.4% a month earlier. Investors also turned attention to upcoming US CPI data for July and UK GDP releases for Q2 and June, scheduled for Wednesday and Thursday, respectively.
On the technical side, GBP/USD remained above the 20-period EMA near 1.3429 and held support around 1.3455 tied to the descending triangle pattern, with upside potential toward 1.3600 if it can extend above the July 15 high near 1.3558.
Latest closeGBP/USD 1.351 ▲0.4%