Sterling Rebounds as Weak US Jobs Data Weighs on Dollar
Sterling extended gains above $1.32, recovering from its weakest level in three months as weaker-than-expected US employment data weighed on the dollar. The US economy added just 29,000 jobs in September, well below expectations of 90,000, strengthening expectations that the Federal Reserve may leave rates unchanged in October, while a December move is seen as more likely. Meanwhile, markets are pricing around 30 basis points of Bank of England tightening by year-end and roughly 90 bps by the end of 2027. Several policymakers, including Governor Andrew Bailey, have signaled greater openness to higher rates as rising energy costs increase the risk of inflation remaining above target. Elsewhere, sterling received support from comments by Prime Minister Andy Burnham favoring closer UK-EU ties ahead of a summit expected around November 20, including the possibility of revisiting EU membership after the next general election.
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32, recovering from its weakest level in three months as weaker-than-expected US employment data weighed on the dollar. The US economy added just 29,000 jobs in September, well below expectations of 90,000, strengthening expectations that the Federal Reserve may leave rates unchanged in October, while a December move is seen as more likely. Meanwhile, markets are pricing around 30 basis points of Bank of England tightening by year-end and roughly 90 bps by the end of 2027. Several policymakers, including Governor Andrew Bailey, have signaled greater openness to higher rates as rising energy costs increase the risk of inflation remaining above target.
Elsewhere, sterling received support from comments by Prime Minister Andy Burnham favoring closer UK-EU ties ahead of a summit expected around November 20, including the possibility of revisiting EU membership after the next general election.