Pound Falls Below $1.345 Ahead of US Jobs Report

The British pound slipped below $1.345 against the dollar on Friday as traders prepared for the US jobs report, which overshadowed an otherwise quiet session for UK assets.

According to Francesco Pesole, FX strategist at ING, the dollar's advance was driven by cautious positioning and a mild decline in risk appetite, rather than any single catalyst. 'The dollar has regained ground into today's release,' he said. 'Primarily, it was some souring in risk sentiment and an oil rebound on poor Gulf headlines.'

Pesole noted that the negative reaction to the Federal Reserve's July policy meeting, where Chair Kevin Warsh left markets uncertain about the central bank's next move, amplified the dollar's advance.

ING's economics team expects July payrolls to rise by 70,000, below the 80,000 consensus forecast. A soft reading could reignite the dollar selloff and push EUR/USD through 1.1560 resistance, while a strong number would cement Fed hawkishness and return the greenback to the offensive.