The GBP/USD currency pair fell below the 1.2300 mark in the European morning on Friday, as traders eagerly anticipate the release of the United States Nonfarm Payrolls (NFP) report later in the day. The pair's inability to maintain its rebound reflects the impact of a hawkish stance by the Federal Reserve and heightened US bond yields, both of which are curbing potential gains.
The US Dollar's bullish momentum continues to exert pressure on the GBP/USD pair, adding to its vulnerability. Complicating matters further, turmoil in the UK bond market exacerbates the pair's weakness. The focus for traders has now shifted towards the upcoming US labor market data, seeking fresh trading directives.
The Nonfarm Payrolls report, regarded as one of the most crucial economic data releases globally, is typically published on the first Friday each month. The results of this report are expected to significantly influence market dynamics and trader sentiment moving forward.
Meanwhile, gold prices have attracted buyers for the fourth consecutive day on Friday. The demand for gold is fueled by haven flows, driven by uncertainties in the financial markets.
It is important to note that this article reflects the views and opinions of its authors and not those of FXStreet or its advertisers. The information provided herein is not intended as investment advice. Neither the author nor FXStreet is registered as investment advisors.