Pound Surges Above $1.28 as Disappointing US Jobs Data Weighs on Dollar
- Sterling Reaches Highest Level in Almost a Month and Gains Against Euro
The pound has risen above $1.28 as the dollar weakened due to disappointing US jobs data.
Sterling has reached its highest level in nearly a month and made gains against the euro following US government figures showing that non-farm payrolls, a closely watched employment measure, rose by 209,000 in June, which is lower than the analysts’ expected 225,000.
The data also revealed a downward revision of 110,000 for April and May, indicating that the US is not generating as many jobs as previously thought.
These figures suggest that the Federal Reserve may not need to raise interest rates as much as anticipated to control inflation, which has resulted in a decline in the value of the dollar.
However, with unemployment dropping to 3.6%, analysts believe that the Fed is likely to raise interest rates again this month.
Stan Shipley, senior economist at Evercore, commented that the latest jobs report “suggests the economy is okay, but not booming in the way it was six months ago.” He added, “The Fed will probably still hike in July. The question is about the Fed meetings after July.”
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