The Pound Sterling has decreased for the third consecutive day, falling by approximately 0.10%. The slide is attributed to unexpectedly strong US jobs data, which suggests a robust labour market and reduces expectations for Federal Reserve rate cuts in the coming year. The GBP\/USD now trades at 1.3444, after earlier reaching a daily high of 1.3465.<\/p>\n
The GBP\/USD is under pressure as the US Dollar strengthens, buoyed by the release of better-than-expected US ISM Services PMI data for December. During the European trading session on Thursday, the pair traded close to 1.3450.<\/p>\n
Markets have adopted a cautious stance, with traders focusing on upcoming US economic data releases. The weekly US Initial Jobless Claims report and the anticipated Nonfarm Payrolls (NFP) reading are due later in the week, which are critically eyed by market participants.<\/p>\n
We’re seeing the Pound Sterling weaken against the dollar for a third straight day, now trading around 1.3444. This move is driven by a robust US labor market, underscored by the recent ADP report which showed a gain of 195,000 private sector jobs, beating expectations. This strength is pushing back the timeline for any potential Federal Reserve rate cuts.<\/p>\n
This isn’t just about the Pound; it’s a story of broad US Dollar strength, which is also pressuring the Euro down toward 1.1640. Looking back from our 2025 vantage point, this situation feels similar to the 2022-2023 period when sticky inflation and a tight labor market kept the Fed’s policy restrictive. This historical pattern suggests the dollar’s rally could have legs if the upcoming Nonfarm Payrolls report confirms this trend.<\/p>\n
With the highly anticipated Nonfarm Payrolls data on the immediate horizon, we believe positioning for further downside is prudent. Buying puts on the GBP\/USD with a strike price below 1.3400 could be a viable strategy to capitalize on a stronger-than-expected jobs number. This provides defined risk ahead of a potentially volatile market event.<\/p>\n
Beyond this week’s jobs report, the focus will quickly shift to inflation readings. We saw in the last report for December 2025 that core CPI remained stubborn at 3.1%, still well above the Fed’s target. If the labor market stays hot, it will be very difficult for the Federal Reserve to justify easing policy anytime soon.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Pound Sterling dips for third day as strong US data lifts dollar, limiting Fed rate cut hopes.<\/p>\n","protected":false},"author":62,"featured_media":17032,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-38647","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38647","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=38647"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38647\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17032"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=38647"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=38647"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=38647"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}