GBP/USD Bounces Back After Stronger-Than-Expected US Jobs Report
The British Pound (GBP) trimmed its losses against the US Dollar (USD) after a stronger-than-expected United States employment data briefly lifted the Greenback. The GBP/USD pair fell to an intraday low of 1.3482 immediately following the release of the Nonfarm Payrolls (NFP) report before rebounding.
The NFP increased by 162K in August, nearly three times the market forecast of 56K. This stronger-than-expected jobs report pushed rate hike expectations higher, with markets now seeing a 60% chance of a 25-basis-point (bps) increase at the September 15-16 meeting.
On the other hand, recent comments from Fed officials indicate that policymakers are more focused on restoring price stability. Fed Governor Christopher Waller said he is 'finally seeing some signs of disinflation' and that the current interest-rate setting could bring inflation back to the Fed's 2% target.