Pound tops $1.28 as subdued US jobs figures dent the dollar
Pound rises back above $1.28 as weaker-than-expected US jobs data dents dollar
The pound rallied back above $1.28 as weaker-than-expected US job data dented the dollar.
Sterling reached its highest level in nearly a month and made gains against the euro after US government figures showed nonfarm payrolls, a closely monitored employment metric, rose by 209,000 in June – down from the 225,000 analysts had expected. expected.
Data for April and May were revised down by 110,000, suggesting the US is not creating as many jobs as thought.
The numbers suggested that the Federal Reserve may not need to raise interest rates as far as expected to bring inflation back under control, driving the dollar lower.
But with the unemployment rate falling to 3.6 percent, analysts said the Fed was likely to raise interest rates again this month.
Evercore senior economist Stan Shipley said the latest jobs report “suggests the economy is fine, but not as booming as it was six months ago.”
He added: “The Fed will probably still raise rates in July.
“The question is about the Fed meetings after July.”