GBP/USD Breaks Below 1.3400 After Strong US NFP
The British pound fell below 1.3400 against the dollar after a better-than-expected US Nonfarm Payrolls report boosted the greenback. The data suggests the US economy may be running hot, reducing the case for Federal Reserve rate cuts.
Sterling dropped under the 1.3400 handle on Friday, losing 0.37% against the US dollar, after the latest Nonfarm Payrolls report in the United States sharply exceeded market forecasts. The blowout jobs numbers reinforced expectations that the US economy remains robust, potentially diminishing the likelihood of imminent rate cuts by the Federal Reserve.
The move extends recent weakness for the pound, which had already been under pressure from domestic economic concerns. A stronger dollar weighed on the pair as traders repriced Fed policy expectations. The breakdown below the key 1.3400 level could accelerate selling, with the next support zone around 1.3300 if the dollar rally continues.
Source: FXStreet Forex News