GBP/USD: Pound Stages Modest Rebound to Top $1.21 Ahead of Key US Jobs Data

The British currency has been struggling to overturn its downward trend. Can the jobs report give it a boost tomorrow?

• The GBPUSD pair staged a mild recovery on Wednesday, leaping from $1.2040 to $1.2130 as currency traders show optimism for the pound ahead of a key jobs report tomorrow. Early on Thursday, the pair is walking a fine line, swinging from red to green.
• Forex bros are already positioning their portfolio to meet tomorrow’s data. The US is gearing up to unveil how many new jobs were added in September and consensus stands at 163,000. The projected number is less than the 187,000 new jobs created in August.
• How could the nonfarm payrolls affect the GBP/USD? On the one hand, if the actual number aligns with the consensus call, or hits lower, markets will get a relief that the economy is cooling as intended. And weakness in the US dollar may follow as a result. On the other hand, a hot report that overshoots estimates could be a signal for more of those interest rate hikes by the Fed, that have fueled the greenback.