GBP/USD Breaks Above 1.3500 as US Jobs Data Falls Short

The British pound surged past the 1.3500 level against the US dollar on Friday after the release of weaker-than-expected US Non-Farm Payrolls data.

The US economy added fewer jobs than anticipated, with non-farm payrolls increasing by only 150,000 in the reporting month, well below the 180,000 forecast by economists.

This has reinforced market bets that the Federal Reserve may pause its rate hiking cycle sooner than previously expected, leading to a broad sell-off in the US dollar and a strengthening of the pound.

The pound's climb above 1.3500 is also due to relatively resilient UK economic fundamentals, including recent PMI readings in expansion territory and cooling inflation.