Sterling fell nearly 0.60% against the dollar, pushing GBP/USD down to 1.3371 after a peak near 1.3463 and taking the pair below 1.3400. The move followed stronger US data: October Nonfarm Payrolls rose 165K versus 65K expected, while September was revised up to 60K from 29K, and the unemployment rate eased to 4.1%. Separately, the University of Michigan’s preliminary November consumer sentiment reading improved to 51 from 48, as inflation expectations cooled to 4.3% for one year (from 4.7%) and 3.4% for five years (from 3.5%). After the release, the CME FedWatch Tool showed December hike odds rising to nearly 77% from 67% a day earlier.
Geopolitical Developments And Central Bank Policy
Geopolitical headlines added background noise, with an Iranian source saying Tehran was responding positively to a mediators’ proposal, while separate reports referenced a US aircraft emergency notice near Oman. In the UK, a Bank of England rate rise failed to keep GBP supported after the pair could not clear 1.3500, though the Bank flagged the possibility of another increase and said it saw no clear evidence of second-round effects.
Technical Levels And Market Indicators
On the charts, GBP/USD traded around 1.3368, just above a 50/100/200-day SMA cluster near 1.3362; resistance levels cited include 1.3381, 1.3684 and 1.3855, with a lower reference point at 1.3235 and a 14-day RSI at 50.77.
