Sterling's Rally Stalls on Strong US Jobs Data

The Pound Sterling's recent rally has stalled as strong US jobs data and hawkish pressure from Federal Reserve officials have lifted bets for a September rate hike.

According to recent job reports, the US Nonfarm Payrolls in August exceeded expectations at 162K, while the Unemployment Rate remained unchanged at 4.1%.

Fed officials, including Chairman Kevin Warsh and Cleveland Fed's Beth Hammack, have expressed hawkish stances on inflation, with Hammack stating that 'policy is not restrictive and inflation is too high,' and adding that 'contact views indicate now is the time for the Fed to hike to control inflation.'

As a result, money markets now assign a 61% probability of a rate increase by the Fed in September, up from 54% yesterday. The US Dollar Index (DXY) has risen 0.18%, tracking the performance of the American currency against six peers.