The US dollar was weakening after the united States employment data report showed the significant decline which was far from the expectation. That was happened yesterday night. 

That condition made the market sure that the Federal Reserve will hold the tapering stimulus in a closer time. When this news was released, the USD index declined by 0.14% to 92.08.

That was the lowest level since August. The U.S. Department of Labor reported that the United States non-farm payrolls reached just 235,000 in August. 

The gain was well below expectations of 720,000 and the previous U.S. NFP revised up to above one million. However, the other data released at the same time were quite good. 

The Jobless Rate Decreased

The U.S. unemployment rate fell to 5.2% as expected by so many parties. The Average Hourly Earnings rose to 0.6% from 0.4%. It means that it is better than expected to fall to 0.3%.

The results of this long-awaited employment report in America show a slowdown in economic recovery. It is especially in the third quarter of 2021 in that superpower country. 

The Delta's surge in COVID-19 infections in the United States and the lack of raw materials for the industry is suspected to be the cause of the slowdown in economic recovery so far. 

Markets expect the Fed not to change its policy anytime soon. This thing is clearly becoming the air cover and that is for sure the real one. The Fed doesn’t need anything right now. 

The Powell’s Speech is Highlighted 

The Fed’s Leader, Jerome Powell through his speech in the Jackson Hole symposium last week has been stated that the economy recovery in the America is now happening and running. 

However, he did not give any clearly signals about when the US central Bank planned to cut their assets purchase. Powell just said that the thing like that can be done this year. 

On the other hand, some economists judge that the thing that prevents the Fed from proceeding with the tapering plan is not the low US NFP. There is another cause. 

According to a Reuters quote, the economists further scapegoated the surge in the corona virus as the main cause. Meanwhile, sterling is stronger than the US dollar and Euro. 

There is not any Comment from the Representatives

The sterling increase to the US dollar and Euro was happened amidst the employment and data anticipations in the America. That data will be released tomorrow based on the schedule. 

When this news was released, the GBP/USD increased by 0.46 percent to the level of 1.3832. In one week, there has been no timetable for the release of high-impact economic data from the UNITED KINGDOM.

There is not any comments from the Bank of England officials as well regarding the central bank policy. Therefore, the movement of the Pound is purely due to the influence of the movement of rival currencies.

The Weekly U.S. Jobless Claims for last week fell to a 24-year low, but the US dollar remained weaker. It is because the investors preferred to wait for U.S. NFP data tomorrow. 

The Biggest Supporter of Sterling

The report is considered to be more considered by the Fed in determining asset tapering. Jeremy Stretch, an analyst at CIBC, said risk interest was the biggest backer.

It is especially for the strengthening pound. If the NFP data proves weak, then Cable could potentially add a little more strengthening. That's because expectations of the employment data are still strong.

However, if the NFP data is only slightly above expectations, then the strengthening of Sterling versus the USD is likely to stall. The interesting thing is that sterling is also stronger than Euro.