Tuesday, 05 August 2025
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GBP/USD rebounds as Fed fate cut bets rise on weak US jobs data
Tuesday, 5 August 2025 00:07 WIB | GBP/USD |London,

The GBP/USD rallies for the second straight day, up by 0.12% following a dismal jobs report in the United States (US). The data prompted investors to price in a rate cut by the Federal Reserve at the upcoming September meeting. The pair trades at 1.3289, after bouncing off daily lows of 1.3253.

Last week, the 258K revision to Nonfarm Payroll figures for May and June, along with July's 73K print, below forecasts of 110K, weighed on the Dollar amidst fears that the labor market begins to show some cracks. The NFP report triggered the firing of the US Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer by US President Donald Trump, who said that the BLS faked jobs numbers.

Consequently, the GBP/USD recovered some ground, though it ended July with losses of over 3.8%. In the meantime, traders brace for the Bank of England (BoE) monetary policy decision this week, with markets pricing a 90% chance of a 25 basis points (bps) cut on August 7. For the rest of 2025, the markets seem convinced that the BoE will slash 50 bps of the Bank rate.

On the data front, US Factory Orders plummeted in June, due to commercial orders for aircraft plunging. The numbers came at -4.8% as expected, down from May's 8.2% positive print.

Source: Fxstreet

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