GBP/USD Surges to 1.3500 as Weak US Jobs Data Sparks Dollar Sell-Off

The GBP/USD pair broke above 1.3500 after Friday's US payrolls report showed a contraction of 23,000 jobs in July, against an expected increase of 80,000.

The drop in job growth, combined with a downward revision of May and June numbers by a total of 103,000, led to a collapse in Federal Reserve September hike odds to 44% from 55% the day before.

The dollar sold off across the board, with the EUR/USD reversing to 1.1560, gold rising towards $4,400, and other major currencies like sterling, yen, Swiss franc, Australian and Canadian dollars gaining ground.

However, analysts note that while the GBP/USD pair has gained 0.69% over the past month, it is flat on a twelve-month basis, with its performance largely driven by US data releases rather than any domestic catalysts in the UK.