GBP/USD Extends Decline as Disappointing UK CPI Fails to Stabilize Cable Ahead of NFP Trading Week

Sterling weakness intensified on Wednesday as Cable (GBP/USD) slipped approximately 0.67% to test the 1.3060 support level. The pair’s downward momentum persisted despite Wednesday’s UK Consumer Price Index release, which failed to provide the catalyst many traders hoped for in generating renewed buying interest in the Pound.

The currency pair has now posted four consecutive sessions in negative territory, signaling sustained bearish sentiment among market participants. This prolonged weakness suggests traders remain cautious on Sterling’s near-term direction heading into a critical week for NFP trading activity.

Upcoming NFP Data Creates Trading Uncertainty

The backdrop for GBP/USD weakness stems partly from uncertainty surrounding upcoming employment data. The US Bureau of Labor Statistics announced it would not release October’s Nonfarm Payrolls figures due to data collection gaps created by the federal government shutdown. This cancellation has left NFP traders facing a thinner calendar of labor market indicators.

September’s NFP report is scheduled for Thursday’s release, yet market expectations remain muted given the upcoming data void. The October postponement means policymakers will lack crucial employment metrics until the new year, potentially allowing speculation to dominate price action through year-end. For those focused on NFP trading strategies, this holiday-shortened data environment presents both challenges and opportunities.

Fed Rate Cut Odds Declining on the NFP Absence

Interest rate markets are repricing expectations, with the Federal Reserve’s December rate cut odds falling to approximately 30% according to the CME FedWatch Tool. The removal of October employment data from the calendar has amplified uncertainty about the Fed’s policy trajectory, causing rate traders to reduce their bets on near-term monetary easing.

This shift in rate expectations has created headwinds for the Pound, as lower US interest rate odds typically weigh on the Dollar’s relative attractiveness. Cable’s four-day losing streak reflects this repositioning as traders reassess the fundamental backdrop ahead of potential NFP trading volatility.

The extended decline in GBP/USD underscores how employment data gaps and shifting rate expectations can reshape currency flows, making the coming week a pivotal period for monitoring both the initial September NFP figures and broader market reaction to the delayed October employment release.