Select Language

GBP/USD hovers above 1.3550 ahead of US Nonfarm Payrolls

Breaking news

GBP/USD hovers above 1.3550 ahead of US Nonfarm Payrolls

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.06.06 12:48
GBP/USD hovers above 1.3550 ahead of US Nonfarm Payrolls

update 2025.06.06 12:48

  • GBP/USD holds gains near 1.3616, the highest since February 2022.
  • US Nonfarm Payrolls is expected to have added 130,000 jobs in May.
  • GBP receives support as Trump granted temporary relief to UK exporters from steep 50% US tariffs on steel and aluminium.

GBP/USD maintains its position near 1.3616, the highest since February 2022, which was recorded on June 5. At the time of writing, the pair is trading around 1.3570, with little moves ahead of labor market data from the United States (US).

The US Dollar Index (DXY), which measures the value of the US Dollar against six major currencies, is trading higher at around 98.80 at the time of writing. The upcoming US Nonfarm Payrolls is expected to have added 130,000 jobs in May, below the 177,000 increase in April. The Unemployment Rate is also expected to hold steady at 4.2%.

Weekly Initial Jobless Claims rose to 247,000, above the expected 235,000, as data released by the US Department of Labor. Thursday's US ADP private sector employment rose 37,000 in May, against a 60,000 increase (revised from 62,000) recorded in April, far below the market expectation of 115,000.

UBS' economist Paul Donovan noted that the Federal Reserve (Fed) Chairman Jerome Powell faces challenges in deciding on monetary policy amid increased uncertainty US economy. The risk of policy error increases as Powell insists on data dependency. Policy operates with a lag, and real-time data, which is unreliable and normally a bad option.

The GBP/USD pair receives support as the Pound Sterling (GBP) finds support amid increased risk sentiment in the United Kingdom (UK) markets following US President Donald Trump's executive order signed on Tuesday. UK exporters still face the previous 25% tariff rate as Trump granted temporary relief to the UK from the steep 50% US tariffs on steel and aluminium.

Economic Indicator

Nonfarm Payrolls

The Nonfarm Payrolls release presents the number of new jobs created in the US during the previous month in all non-agricultural businesses; it is released by the US Bureau of Labor Statistics (BLS). The monthly changes in payrolls can be extremely volatile. The number is also subject to strong reviews, which can also trigger volatility in the Forex board. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish, although previous months' reviews ​and the Unemployment Rate are as relevant as the headline figure. The market's reaction, therefore, depends on how the market assesses all the data contained in the BLS report as a whole.

Read more.

Next release: Fri Jun 06, 2025 12:30

Frequency: Monthly

Consensus: 130K

Previous: 177K

Source: US Bureau of Labor Statistics

America's monthly jobs report is considered the most important economic indicator for forex traders. Released on the first Friday following the reported month, the change in the number of positions is closely correlated with the overall performance of the economy and is monitored by policymakers. Full employment is one of the Federal Reserve's mandates and it considers developments in the labor market when setting its policies, thus impacting currencies. Despite several leading indicators shaping estimates, Nonfarm Payrolls tend to surprise markets and trigger substantial volatility. Actual figures beating the consensus tend to be USD bullish.


Date

Created

 : 2025.06.06

Update

Last updated

 : 2025.06.06

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Tensions on the Copper market - Commerzbank

According to the International Copper Study Group, the Copper market slipped from a supply surplus to a supply deficit of 50 thousand tons in April, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.
New
update2025.06.28 01:34

USD/JPY edges higher as US core PCE rises and risk-on sentiment reduces demand for the Yen

The Japanese Yen (JPY) is weakening against the US Dollar (USD) on Friday as markets weighed fresh inflation figures and a shift in risk appetite.
New
update2025.06.28 01:04

GBP/USD dips from 1.3770 high as US PCE, sentiment data lift Dollar

The GBP/USD retreats by over 0.10% after hitting a near four-year high of 1.3770 on Thursday, dipping to 1.3700 as the US Dollar recovers some ground following the release of the US Core Personal Consumption Expenditures (PCE) Price Index for May.
New
update2025.06.28 00:39

EUR/JPY rally continues as market eyes break above 170.00

The Euro (EUR) strengthens against the Japanese Yen (JPY) on Friday, with the EUR/JPY pair climbing toward levels not seen since July 2024.
New
update2025.06.27 23:54

Dollar Index remains weak as core PCE inflation rises, Personal spending fall

The US Dollar Index (DXY) is nearing 97.00 support as investors digest the latest batch of inflation data released out of the United States.
New
update2025.06.27 22:56

NZD/USD extends winning streak, nearing fresh year-to-date highs

The New Zealand Dollar (NZD) extends its winning streak against the US Dollar (USD) for the fifth straight session on Friday, buoyed by broad-based Greenback weakness.
New
update2025.06.27 22:04

Gold suffers another setback following a US-China trade truce, ahead of PCE inflation report

Gold (XAU/USD) is suffering another setback after reports telling that China and the United States have reached a trade deal.
New
update2025.06.27 21:19

Fed's Kashkari: The Fed might cut rates twice this year

The President of the Federal Reserve Bank of Minneapolis, Neel Kashkari, noted that he was sticking to his view that cooling inflation would allow the Fed to cut its policy rate twice that year, beginning in September.
New
update2025.06.27 21:17

Platinum continues to catch up with Gold - Commerzbank

There's no stopping the price of Platinum: Yesterday, it climbed above the $1,400 per troy ounce mark for the first time since September 2014, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen and commodity analyst Barbara Lambrecht note.
New
update2025.06.27 21:10

JPY flat vs. USD and lagging G4 peers EUR and GBP - Scotiabank

The Japanese Yen (JPY) is soft, down marginally against the US Dollar (USD) and trading around the midpoint of its range since early April, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.06.27 21:05

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel