Forex Market Braces for September NFP Release as GBP/USD Extends Losses

Sterling’s downtrend gathered momentum on Wednesday, with GBP/USD sliding approximately 0.67% toward the 1.3060 handle. Despite the release of UK Consumer Price Index data—traditionally a catalyst for directional moves—the Pound failed to muster any meaningful recovery, instead extending its losing streak to a fourth consecutive session as Cable slid to multi-week lows.

The backdrop for this forex weakness stems partly from uncertainty surrounding US employment data. The Bureau of Labor Statistics has already scrapped October’s Nonfarm Payrolls publication due to the federal government shutdown, leaving traders with sparse visibility into labor market health. This gap in critical NFP data has left rate markets scrambling to reassess the path forward for monetary policy.

NFP Void Reshapes Rate Cut Expectations

With October’s NFP report wiped from the calendar, Thursday’s scheduled release will feature September’s Nonfarm Payrolls figures instead. However, this backdated reading is unlikely to command the usual market-moving attention, particularly given the data void that will persist until year-end.

Rate-sensitive traders have already adjusted their hedges accordingly. Federal Reserve rate cut odds for December 10 have compressed to roughly 30% according to CME FedWatch Tool pricing, reflecting the delayed economic picture and heightened uncertainty in the forex complex.

What’s Next for GBP/USD?

The combination of tepid inflation data from the UK and the distorted NFP calendar has left Sterling vulnerable. Without fresh employment figures to anchor expectations, the forex backdrop remains tilted toward continued Sterling weakness in the near term.