GBP/USD faces downward pressure ahead of US employment data. Improved US Treasury yields hold positions near multi-year highs due to the Fed’s hawkish stance. BoE’s soft tone surrounding policy rates could undermine the Pound Sterling. ort, which could be attributed to the correction in the US Dollar following the decline in US Bond yields. The US Dollar Index attempts to rebound, hovering slightly higher around 106.40 as of now.
These figures will serve as a confirmation of the tight labor market, and upbeat numbers could potentially trigger a rise in the US Dollar and elevate volatility in the bond market. On the other side, the British Pound faces a bout of underperformance, largely influenced by the unexpected move from the Bank of England to halt its rate-hiking cycle in September. This shift deviates from the trend observed since December 2021, as the BoE chose not to raise interest rates.