GBP/USD trades with mild gains above 1.3100, focus on US NFP data
- GBP/USD trades on a firmer note around 1.3125 in Friday’s early Asian session.
- The US Nonfarm Payrolls (NFP) data will be in the spotlight on Friday.
- BoE’s Bailey said he sees a chance of a more aggressive rate reduction.
The GBP/USD pair posts modest gains to near 1.3125, snapping the three-day losing streak during the early Asian session on Friday. However, the upside for the major pair might be limited as traders brace for the highly-anticipated US Nonfarm Payrolls (NFP) data, which is due later on Friday.
Federal Reserve (Fed) Chair Jerome Powell said earlier this week that the recent half-percentage point interest rate cut shouldn’t be interpreted as a sign that future moves will be as aggressive. Powell further stated that if the economic data remains consistent, there are likely two more rate cuts coming this year, but they will be smaller. The reduced bets of jumbo Fed rate cuts might underpin the Greenback in the near term.
The encouraging US economic data on Thursday supports the USD. Data released by the Institute for Supply Management (ISM) showed that the US Services Purchasing Managers Index (PMI) rose to 54.9 in September versus 51.5 prior. This figure came in above the market consensus of 51.7.
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