The post GBP/USD rebounds as traders twist strong NFP into fresh Fed-cut hopes appeared com. The Pound Sterling (GBP) advances during the North American session on Thursday following the release of a stellar Nonfarm Payrolls (NFP) report for September, which revealed the economy added more people to the workforce than expected. At the time of writing, GBP/USD trades at 1. 3117 after reaching a daily low of 1. 3038. Sterling trims losses as robust NFP and firmer labor signals lift December Fed cut expectations, while softer UK data weighs The US Bureau of Labor Statistics (BLS) revealed that 119K jobs were created in September. At the same time, the Unemployment Rate edged up from 4. 3% to 4. 4%, though it remained below the Federal Reserve’s projection of 4. 5% for 2025. The Department of Labor also revealed Jobless Claims for the week ending November 15 came at 220K, its lowest level since September, an indication that the labor market, despite softening, remains stable. After the data, the CME FedWatch Tool showed that investors priced a 43% chance of a 25-basis-point rate cut, up from 29% before the NFP release. Cleveland Federal Reserve (Fed) Beth Hammack said that easing monetary policy now could encourage financial risk-taking. “Cutting rates risks prolonging high inflation,” she said, and added that “financial conditions are quite accommodative right now.” Recently, Fed Governor Michael Barr said that he is concerned about inflation still at 3%, leaning hawkish. In the UK, headline and core inflation edged lower and could push Bank of England (BoE) Governor Andrew Bailey to opt for a rate cut at the December meeting. Data-wise, UK Consumer Confidence tumbled ahead of Chancellor Rachel Reeves’ budget. The British Retail Consortium said that as the government hints at higher income tax in this month’s budget, people are worried about the economy and their personal finances, according to Bloomberg. Therefore, further GBP/USD downside is expected, as central.
Tag: nonfarm payrolls
Silver dips as US Dollar strength, rate cut doubts weigh on gains
The post Silver dips as US Dollar strength, rate cut doubts weigh on gains appeared com. Silver (XAG/USD) trades around $50. 80 on Thursday at the time of writing, down 0. 70% on the day. The white metal is paring part of the earlier weekly advance, after prices briefly tested the $52. 00 area before being rejected as the US Dollar (USD) regained strength. The renewed firmness of the US Dollar is weighing across the commodities space, as investors reassess the likelihood of another Federal Reserve (Fed) rate cut in December. The Federal Open Market Committee (FOMC) Minutes released on Wednesday revealed significant resistance within the committee to further easing, reducing expectations for additional cuts and limiting the appeal of non-yielding precious metals. Silver is also affected by the broad market pause ahead of the delayed Nonfarm Payrolls (NFP) report for September due later in the day. The Bureau of Labor Statistics (BLS) confirmed that the October report will be published together with November’s data due to the government shutdown, reducing short-term macro visibility. Markets will therefore focus on the available indicators, including jobless claims, hourly earnings and participation, which could help shape rate expectations ahead of the December Fed meeting. Meanwhile, improved risk appetite following Nvidia’s strong earnings has triggered a modest rotation out of safe-haven assets, weighing on demand for Silver. Silver Technical Analysis: XAG/USD compresses between falling resistance and rising support Silver 4-hour chart. 80, down for the day by $0. 47 from the opening price. The 100-period Simple Moving Average (SMA) rises to $49. 85, and price remains above it, suggesting underlying support. The Relative Strength Index (RSI) stands at 47, neutral and pointing to fading momentum. A descending trend line from $54. 39 caps gains with resistance near $51. 77, while a rising line from $45. 56 underpins the price around $49. 74. A topside break of the descending barrier could.
GBP/USD extends much-needed recovery as Cable recovers 1.31
The post GBP/USD extends much-needed recovery as Cable recovers 1. 31 appeared com. GBP/USD climbed on Thursday, driven into the high side by over-extended bearish price action that has plagued the pair, as well as a surprisingly close Bank of England (BoE) vote on interest rate moves that gave investors hope that the BoE might be moving to support the UK’s flagging economy despite still-high inflation metrics. The BoE’s Monetary Policy Committee (MPC) voted to keep interest rates on hold this week, a move that surprised functionally nobody within the investment community. What did come as a surprise was the distance (or lack thereof) between MPC voters voting to hold or cut interest rates. The BoE’s interest rate setting guild voted five-to-four to keep interest rates on hold until the MPC’s next interest rate decision, a notably tighter gap between holders and cutters than initially expected. Central banks would typically be loathe to trim interest rates at a time when the UK’s national inflation rate has remained stubbornly high, near 3. 8% since July. That figure is nearly double the top end BoE’s preferred inflation rate band, however, a lopsided economy and lagging growth metrics may be prompting the BoE to reconsider it’s primary focus. This Friday would have seen the release of the US’s latest Nonfarm Payrolls (NFP), however, the longest US government shutdown in history has crimped the flow of official datasets. Investors have defaulted to paying additional attention to private data releases despite a tendency to produce volatile results on a release-to-release comparison. University of Michigan Consumer Sentiment and Consumer inflation expectations survey results are still due on Friday, and could take on additional weight for investors who are missing out on meaningful government-level inflation and labor metrics. GBP/USD daily chart Pound Sterling FAQs The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency.