Pound Under Pressure Ahead of US Jobs Report and Energy Price Volatility

The Pound to Dollar exchange rate (GBP/USD) has remained close to three-week lows around 1.3500 due to elevated energy prices and lingering bond-market tensions.

While a modest recovery in risk appetite helped the pair regain the 1.3500 area, investors remain cautious ahead of Friday's US employment report that could determine whether the Federal Reserve raises interest rates in September.

A stronger-than-expected jobs report would reinforce expectations that the Fed can tighten policy again and could push GBP/USD back below 1.3480, while weak payroll growth or an increase in unemployment would strengthen the argument for a September hold, potentially allowing Sterling to recover towards 1.3550.