The GBP/USD pair recovers at a strong pace from an intraday low of 1.2707 above the round-level resistance of 1.2800 in Friday’s New York session. The Cable discovers strong buying interest on disappointing United States (US) Nonfarm Payrolls (NFP) data for July, which boosts already firm speculation of Federal Reserve (Fed) September interest rate cuts.Fresh payrolls came in lower at 114K than estimates of 175K and June’s reading of 179K. The Unemployment Rate jumps to 4.3%, the highest since November 2021, from expectations and the prior release of 4.1%. The report suggests the consequences of higher interest rates by the Fed on the labor market.The NFP report cleared that risks have now widened to both factors of the Fed’s dual mandate. Meanwhile, annual Average Hourly Earnings have decelerated at as faster-than-expected pace to 3.6% from the estimates of 3.7% and the former release of 3.8%. Also, the wage growth measure rose at a slower pace of 0.2%. A steep cut on individuals’ finances will weaken overall spending.In the monetary policy announcement, Fed Chair Jerome Powell commented that rate cuts could be sooner rather than later if the labor market faces unexpected risks.Weak employment data has weighed heavily on the US Dollar (USD). The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, dives to a fresh four-month low near 103.30.On the other side of the Atlantic, the Pound Sterling remains mixed against its major peers after the expected interest rate-cut decision by the Bank of England (BoE) on Thursday. The BoE reduced key borrowing rates by 25 basis points (bps) to 5%, with a 5-4 vote split. Over the interest rate outlook, BoE Governor Andrew Bailey commented in the press conference that the central bank won’t follow an aggressive policy-easing stance.More By This Author:USD/CAD Hovers Near Nine-month High Below 1.3900 With US NFP In Focus EUR/USD recovers above 1.0800 as US Dollar declines ahead of US NFPUSD/CAD Price Analysis: Retreats To 1.3800 As US Dollar Surrenders Intraday Gains
