GBP Hits Two-Week High as Weak US Payrolls Weigh on Dollar
Key Facts
In a move reflecting the heightened sensitivity of forex markets to macroeconomic data, the British Pound rallied to a two-week high against the US Dollar. According to reports, the GBP/USD pair traded around $1.3369 following a disappointing US Non-Farm Payrolls report, which led investors to scale back expectations for Federal Reserve rate hikes. The Sterling recorded a weekly gain of approximately 1.3% as the US Dollar index faced broad selling pressure.
This upward momentum comes as traders monitor the diverging monetary policy paths between the Bank of England and the Federal Reserve, supported by UK GDP growth of 0.6% QoQ as reported in market data on June 30, 2026. In comparison to other major peers, the Euro also found support against the weakening Greenback, while analysts at ING suggest that the cooling US labor market could accelerate the Fed's transition toward a more accommodative stance (per research citations).
Key catalysts on the horizon include the Chinese Manufacturing PMI due on June 30, 2026, which could impact global risk sentiment, alongside upcoming inflation data from France and Italy that will help shape the broader European currency narrative against the Dollar.
Latest Updates · 2
- Notable·
Update: The British currency's momentum extended to emerging market crosses, with the GBP/ZAR pair settling at 21.6704 at the end of the week. Investors are now shifting focus toward South African factory output data and upcoming UK GDP figures to gauge the sustainability of these levels.
- Notable·
Update: The British Pound's momentum has been bolstered by a seven-session winning streak, marking a significant recovery from seven-month lows. According to reports, the pair successfully rebounded from near the $1.3200 level to establish a trading range between $1.3350 and $1.3380.