GBP/USD Bounces Back Above 1.35 After Strong Jobs Data

The Pound Sterling (GBP) saw a boost in value against the US Dollar (USD) after stronger-than-expected jobs data from the US. The GBP/USD exchange rate hovered around the 1.3500 area, a key support level that has been under pressure.

Scotiabank analysts believe there is still hope for Sterling bulls, with short-term price action suggesting important support at or just below 1.3500. However, they also note that the medium-term trend remains bullish from June.

The strong jobs numbers, which showed an increase of 162,000 in August, comfortably above consensus forecasts, have increased the implied probability of a September Federal Reserve rate hike to around 60%. The report was seen as a significant upside surprise and has strengthened the case for a rate hike.