The GBP/USD pair experienced renewed bearish pressure on Wednesday, declining by approximately two-thirds of one percent to the 1.3060 region. UK Consumer Price Index (CPI) inflation data, released on Wednesday, failed to trigger a sustained recovery in Pound Sterling (GBP) flows. Instead, it pushed Cable bids to multi-week lows, marking the fourth consecutive session of decline.
The US Bureau of Labor Statistics has preemptively canceled the release of October’s Nonfarm Payrolls (NFP) report, citing insufficient data collection during the federal government shutdown. This development is already causing rate markets to recoil, reducing the perceived likelihood of a December rate cut. According to the CME’s FedWatch Tool, the odds of a Federal Reserve (Fed) interest rate cut on December 10 have fallen to approximately 30%.
While September’s NFP jobs report is scheduled for publication on Thursday, it is now unlikely to capture significant market attention. This is due to an anticipated data void for October, which will leave policymakers with a lack of fresh economic information until the new year.
Here’s an image that illustrates the GBP/USD resuming its slide, with elements depicting the UK CPI data, the impact of the US NFP data delay, and the declining odds of a Fed rate cut.
