US Jobs Data Revives Rate Hike Expectations, Sterling Suffers

Sterling fell against the US dollar on Friday by 0.09%, staying near its open at 1.3512, as strong US labor data revived rate hike expectations.

The August Nonfarm Payrolls rose to 162K, beating forecasts of 56K and July's 21K, while the Unemployment Rate remained steady at 4.1%.

This led to a rise in the implied probability of a September Fed rate hike to 61%, up from 54% the previous day, and the US Dollar Index added 0.18% to 99.17.