GBP/USD Exchange Rate Falls to Three-Month Lows Amid Global Bond Market Volatility
The Pound to Dollar exchange rate (GBP/USD) came under intense pressure on Thursday, falling to fresh three-month lows below 1.3200 before stabilizing due to extreme moves in global bond markets.
The 2026 low remains around 1.3140, and the GBP/USD touched around 1.3193, its lowest level since June, before recovering modestly.
Risk appetite deteriorated sharply as bond yields surged across major markets, boosting demand for the Dollar and limiting support for Sterling.
The weak US jobs data released on Friday provided some relief, with non-farm payrolls increasing by just 29,000 in September, far below consensus forecasts of around 90,000.
This led to a sharp retreat in Treasury yields and reduced expectations that the Federal Reserve will raise rates again in October, with markets cutting the implied probability of an October hike to around 20%.