GBP/USD: Pound Shoots Higher by 1% as UK Skips Rate Hike, All Eyes on US Job Number

Forex traders brace for a volatility rush today when the US reports this year’s first labor-market update— the January nonfarm payrolls.

• The GBPUSD pair shot sharply higher on Thursday and remained well-bid in early Friday dealmaking. The sterling jumped 1% against the dollar, crossing the $1.2750 threshold after a boost from Bank of England officials who left benchmark interest rates flat at 5.25% to 5.50%.
• Next up, America’s employers are in focus. It’s time for job numbers and analysts are eyeballing a cool 187,000 new hires to have been added in January. The data will be a key gauge for the Federal Reserve, who’s on the outlook for anything out of line. A value too high may sway officials to reconsider their three-rate-cuts agenda for 2024.
• In that context, the GBPUSD exchange rate is looking to break out of its rather stubborn consolidation area. For the past two months, the pair has been caught in the range between $1.2600 and $1.2800. Today’s nonfarm payroll survey can provide much-needed fuel for a fresh journey into new price discovery.