Select Language

GBP/USD rebounds as Fed fate cut bets rise on weak US jobs data

Breaking news

GBP/USD rebounds as Fed fate cut bets rise on weak US jobs data

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.08.05 01:34
GBP/USD rebounds as Fed fate cut bets rise on weak US jobs data

update 2025.08.05 01:34

  • GBP/USD rises 0.12% to 1.3289 as Dollar slumps on soft US labor data.
  • July NFP print at 73K; prior months revised down 258K, triggering BLS chief firing.
  • Markets price 76% chance of Fed rate cut in September.
  • BoE expected to cut by 25 bps on August 7; 50 bps easing seen for 2025.

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.

Sterling gains for second day, but July closes with over 3.8% loss; BoE cut eyed this week

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.

GBP/USD Price Forecast: Technical outlook

The GBP/USD halted its downtrend, yet it remains poised to consolidate within the 1.3200 - 1.3300 range for the first day of the week. After hitting a daily high of 1.3330, the pair dipped close to 50 pips, forming an 'inverted hammer' or shooting star. This suggests traders are reluctant to push prices higher, and a daily close below 1.3300 could sponsor a test of lower prices.

The first support is 1.3250, followed by 1.3200 and July's bottom of 1.3141. Conversely, a daily close above 1.3300 can sponsor a test of the 100-day SMA at 1.3340, ahead of testing the June 23 support turned resistance at 1.3369.

British Pound PRICE This month

The table below shows the percentage change of British Pound (GBP) against listed major currencies this month. British Pound was the strongest against the US Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -1.21% -0.58% -2.37% -0.51% -0.51% -0.04% -0.45%
EUR 1.21% 0.74% -1.16% 0.77% 0.84% 1.03% 0.83%
GBP 0.58% -0.74% -1.86% 0.03% 0.10% 0.50% 0.11%
JPY 2.37% 1.16% 1.86% 1.88% 1.90% 2.26% 1.97%
CAD 0.51% -0.77% -0.03% -1.88% -0.02% 0.47% 0.08%
AUD 0.51% -0.84% -0.10% -1.90% 0.02% 0.40% 0.11%
NZD 0.04% -1.03% -0.50% -2.26% -0.47% -0.40% -0.29%
CHF 0.45% -0.83% -0.11% -1.97% -0.08% -0.11% 0.29%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).


Date

Created

 : 2025.08.05

Update

Last updated

 : 2025.08.05

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

Dow Jones Industrial Average claws back ground after a week of declines

The Dow Jones Industrial Average (DJIA) bounced back on Monday, clawing back over 500 points and scrambling back over the 44,000 major handle as equity markets recovered their footing following last week's late rout fueled by worse-than-expected hiring figures from the latest Nonfarm Payrolls (NFP)
New
update2025.08.05 03:06

Canadian Dollar treads water as bullish Greenback pressure eases

The Canadian Dollar (CAD) found some much-needed footing on Monday, trading in a steady range near 1.3775 against the US Dollar (USD).
New
update2025.08.05 01:58

GBP/USD rebounds as Fed fate cut bets rise on weak US jobs data

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.
New
update2025.08.05 01:33

Australian Dollar falters below 0.6500 as RBA rate cut bets weigh on sentiment

The Australian Dollar (AUD) loses traction against the US Dollar (USD) on Monday, as the Greenback stabilizes in the aftermath of Friday's disappointing Nonfarm Payrolls (NFP) report. July's jobs report delivered a clear downside surprise.
New
update2025.08.05 01:28

US President Trump: Will substantially raise tariff on India

United States (US) President Donald Trump said that he will raise the tariff rate on Indian imports "substantially."
New
update2025.08.05 00:12

EUR/USD pauses below 1.1600 as soft US labor data lifts interest rate cut hopes, Eurozone outlook weakens

The Euro (EUR) holds firm against the US Dollar (USD) on Monday, consolidating Friday's sharp gains after a weaker-than-expected US Nonfarm Payrolls (NFP) report fueled expectations that the Federal Reserve (Fed) will cut interest rates as soon as September.
New
update2025.08.05 00:00

USD net shorts rise amid payroll miss - Rabobank

USD net short positions have increased for the first time in four weeks, driven by a decrease in long positions. EUR net long positions have decreased for the second week in a row, driven by an increase in short positions.
New
update2025.08.04 23:32

BoE: Quarterly bound - Standard Chartered

BoE to cut the base rate by 25bps on 7 August, but another split MPC is likely. Divergent signals from the labour market and prices likely to keep the BoE on a quarterly easing schedule.
New
update2025.08.04 23:07

Eurozone services disinflation continues - ABN AMRO

Headline HICP inflation surprised modestly to the upside in July, holding steady at the ECB's 2% target, against our and consensus expectations for a move lower to 1.9%, ABN AMRO's economist Bill Diviney reports.
New
update2025.08.04 22:44

EUR/GBP dips as traders reposition ahead of BoE interest rate decision

The Euro (EUR) edges lower against the British Pound (GBP) on Monday, with the Pound trading on a firmer footing across the board, as traders reposition ahead of the Bank of England's (BoE) monetary policy decision due Thursday, August 7.
New
update2025.08.04 22:31

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