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GBP/USD rises after weak US jobs data boosts rate-change bets

The dollar weakened after September employment added 29,000 jobs versus 90,000 expected, lifting expectations the Fed could stay on hold in October.

Reported · Written up by our desk · Major Pairs

GBP/USD opened the new week of October at 1.3237 as the pound rebounded from three-month lows, with weakness in the US dollar tied to a soft US labour market report, Action Forex reported.

According to Action Forex, the US economy added just 29,000 jobs in September compared with expectations of 90,000, reinforcing expectations that the Federal Reserve could leave rates unchanged in October, while the odds of a move in December have risen.

In the UK, Action Forex said markets are pricing about 30 basis points of Bank of England tightening before year end and around 90 basis points by the end of 2027, supported by comments from Bank of England officials including Andrew Bailey about the possibility of raising rates if high energy prices keep inflation above target for longer.

Action Forex also pointed to support for sterling after Prime Minister Andy Burnham backed closer UK ties with the EU ahead of a summit expected around 20 November, alongside discussion of revisiting EU membership around the next general election.

Latest closeGBP/USD 1.324 ▼0.2%

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