{"id":14966,"date":"2024-09-10T06:54:20","date_gmt":"2024-09-10T06:54:20","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14966"},"modified":"2024-09-10T06:54:20","modified_gmt":"2024-09-10T06:54:20","slug":"sterling-falls-as-the-u-s-dollar-gains-on-jobs-fueled-rally","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/sterling-falls-as-the-u-s-dollar-gains-on-jobs-fueled-rally\/","title":{"rendered":"Sterling falls as the U.S. dollar gains on jobs-fueled rally"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>GBPUSD fell 1% after US dollar strength was fueled by lower-than-expected jobs data.<\/li>\n\n\n\n<li>The US economy added 142,000 jobs in August, below the consensus estimate of 164,000.<\/li>\n\n\n\n<li>Markets now anticipate volatility leading up to the Fed&#8217;s interest rate decision on September 18.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The GBPUSD pair experienced a sharp reversal, with the pound erasing more than 1% in gains due to a sudden surge in the US dollar following the release of the US jobs report.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/09\/GBPUSD-1024x473.jpeg\" alt=\"GBPUSD\" class=\"wp-image-14967\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Picture: GBPUSD pair dropped 1% as the US dollar rallied, as observed on the<\/strong><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\"><strong> <\/strong><strong>VT Markets app<\/strong><\/a><strong>.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Earlier in the session, the British pound reached a high of $1.3230, nearing its 2024 peak, before the greenback staged a rapid comeback, pushing the currency pair lower.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The jobs report revealed that the US economy added 142,000 jobs in August, falling short of the expected 164,000. Although this figure showed a slowdown in the labour market, the key takeaway for traders was the reaction of the Federal Reserve. Prior to the report, the market was pricing in a 25 basis point (bps) rate cut from the Fed. However, the weaker jobs data has raised concerns that this cut might not be sufficient to support economic growth. As a result, traders increased their bets on the possibility of more aggressive policy actions, which fueled demand for the US dollar.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Related content: <a href=\"https:\/\/www.vtmarkets.com\/blog\/education\/interest-rate-tug-of-war-for-central-banks-hawkish-vs-dovish\/\">Interest rate tug-of-war for central banks<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What\u2019s next for GBPUSD<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Looking ahead, the Fed\u2019s interest rate decision on September 18 will likely drive further volatility in the GBPUSD pair. If the Fed opts for a larger 50bps rate cut, it could weaken the dollar and give the pound a chance to recover. Conversely, a more modest cut could strengthen the dollar further, creating headwinds for the pound.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">\u26a0\ufe0f JUST IN:<br><br>*CITI SAYS FED EXPECTED TO CUT INTEREST RATES BY 125 BPS OVER REST OF 2024<br><br>WHAT ARE YOUR THOUGHTS? <a href=\"https:\/\/t.co\/xVeJ8LZXXm\">pic.twitter.com\/xVeJ8LZXXm<\/a><\/p>&mdash; Investing.com (@Investingcom) <a href=\"https:\/\/twitter.com\/Investingcom\/status\/1833189899089932780?ref_src=twsrc%5Etfw\">September 9, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Risks and opportunities in the market<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For short-term traders, the volatility surrounding the Fed\u2019s next move presents both risks and opportunities. A surprise in the size of the Fed\u2019s rate cut could lead to sharp price movements in the GBPUSD <a href=\"https:\/\/www.vtmarkets.com\/tools\/education\/learn-forex\/most-traded-fx-pairs\/\">currency pair<\/a>. Traders should remain cautious and closely monitor upcoming US economic data, such as inflation and retail sales, as these could offer additional clues on the Fed\u2019s policy direction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\"><strong>Create your live VT Markets account<\/strong><\/a><strong> and<\/strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\"><strong> <\/strong><strong>start trading<\/strong><\/a><strong> now.<\/strong>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Points: The GBPUSD pair experienced a sharp reversal, with the pound erasing more than 1% in gains due to a sudden surge in the US dollar following the release of the US jobs report.&nbsp; Picture: GBPUSD pair dropped 1% as the US dollar rallied, as observed on the VT Markets app. Earlier in the<a href=\"https:\/\/www.global-vtrader.com\/en\/analysis\/sterling-falls-as-the-u-s-dollar-gains-on-jobs-fueled-rally\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[12],"class_list":["post-14966","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-forex"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14966","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=14966"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14966\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}