Cable Keeps Losing Ground as Markets Await Employment Surprise

The British Pound is struggling to find its footing this week, with GBP/USD sliding roughly 0.67% during Wednesday trading. At current levels around 1.3060, this puts 90 GBP to USD conversion at approximately $117.48—marking fresh weakness for the Sterling over recent sessions.

Why UK Inflation Data Failed to Help

The UK released its latest Consumer Price Index (CPI) figures on Wednesday, but instead of providing support for the Pound, the data actually triggered additional selling pressure. Cable has now notched four consecutive daily declines, with traders seemingly dismissing the CPI reading as insufficient to drive meaningful recovery in Sterling flows.

The NFP Curveball Ahead

What’s complicating the picture further is the unusual employment data calendar. The US Bureau of Labor Statistics announced it would skip October’s Nonfarm Payrolls (NFP) report due to the federal government shutdown disrupting data collection. This leaves markets in an awkward position heading into year-end.

Rate Cut Odds Shifting Lower

The backdrop of scarce economic data is already weighing on expectations for Federal Reserve action. Using CME’s FedWatch Tool to gauge market sentiment, rate traders have now priced down the probability of a December 10 interest rate cut to around 30%—a notable retreat from prior expectations. With October NFP missing and November’s report still weeks away, policymakers face a critical data gap until 2025.

What Thursday Brings

September’s employment report will be published on Thursday, though traders aren’t expecting this older snapshot to generate much fresh market conviction given what lies ahead in the calendar. The real question now is whether GBP/USD can stabilize at current levels or if the absence of supportive data will push Sterling into deeper losses.