GBP Surges on Soft ADP Jobs Data as Markets Eye NFP Report

The British Pound strengthened against the US Dollar on Wednesday due to softer-than-expected ADP employment data, which raised concerns about the resilience of the US labor market.

According to the ADP National Employment Report, private sector employment in the US increased by 152,000 jobs in May, below the market consensus of 175,000.

This reading weighed on the greenback, causing investors to trim bets on further Federal Reserve rate hikes and prompting a retreat from its recent highs in the US Dollar Index.