The Pound Sterling remained steady against the Greenback on Thursday after a solid Nonfarm Payrolls report in the United States (US) cemented the case that the Federal Reserve would hold rates at the July meeting, as the Unemployment Rate ticked lower. At the time of writing, the GBP/USD trades at 1.3634, virtually unchanged.

The US Bureau of Labor Statistics (BLS) reported that the US economy added 149,000 people to the workforce, exceeding estimates of 110,000 and May's 144,000 print. The Unemployment Rate came at 4.1% down from 4.2%. The data fortifies the Fed Chair Jerome Powell's stance of wait-and-see and assesses the potential impact of tariffs on inflation.

Investors had reacted to the data, slashing bets that the Fed would cut rates by 50 basis points (bps) instead of the 65 bps priced in at the beginning of July. Consequently, US Treasury bond yields soared, with the 10-year note yielding 4.336%, up five basis points, while the US dollar hit a four-day high, according to the US Dollar Index (DXY).

The DXY, which tracks the performance of the buck against six other currencies, hit 97.42 before settling at around 97.10, posting gains of 0.34%.

Other data revealed that Initial Jobless Claims for the week ending June 28 were lower than the forecasted 240,000, coming in at 233,000, below the prior reading reported. The Institute for Supply Management (ISM) reported that the Services PMI increased in June to 50.8, up from 49.9 in May.

Cable was pressured by the strength of the dollar, but also by uncertainty about Britain's finance minister, Rachel Reeves. Discussions in parliament forced the Prime Minister, Keir Starmer, to refrain from significant spending cuts, leaving a hole in public finances.

Fears that Reeves would be replaced sent Gilt yields skyrocketing by over 25 bps, and the Pound plunged to six-day lows of 1.3562.

Source: Fxstreet