Sterling Surges on Weaker US Jobs Data

The British pound rebounded to above $1.32 as weaker-than-expected US employment data weighed on the dollar.

The US economy added just 29,000 jobs in September, well below expectations of 90,000, which has strengthened expectations that the Federal Reserve may leave rates unchanged in October.

This weak employment figure also increases the likelihood of a rate hike by December.

Market participants are pricing around 30 basis points of Bank of England tightening by year-end and roughly 90 bps by the end of 2027.