Ella 
GBP/USD was weak in early Asian trading on Monday, trading around 1.2805, interrupting a seven-day winning streak. The rebound in the US dollar pushed GBP/USD lower. However, GBP/USD’s downside may be limited as market bets on the Federal Reserve (Fed) to cut interest rates in the third quarter continue to heat up.
The US non-farm payrolls (NFP) data released last Friday was stronger than expected, with a net increase of 206,000 non-farm jobs in June, according to the US Bureau of Labor Statistics (BLS). The May non-farm data was significantly revised down from the initial 272,000 to 218,000.
In addition, the annual rate of average hourly earnings in the United States fell to 3.9% in June, from 4.1% in the previous month. The unemployment rate rose to 4.1% for the first time since December 2021. Due to the slowdown in US job growth in June, traders increased their bets on the Fed to cut interest rates this year.
The British pound sterling swung higher as the Labour Party secured a landslide victory in the 2024 UK general election, winning 410 seats, a significant increase of 212 seats from the 2019 election. A single party winning with an absolute majority is considered positive for its financial markets and boosts the pound.
