Delayed NFP Data Spurs Continued GBP/USD Weakness

LiquidationKing · 2025-12-25T00:26:28+00:00

The Pound Sterling weakens as UK inflation data fails to boost the currency, leading to consecutive declines. The cancellation of October's US Nonfarm Payrolls adds uncertainty, prompting a shift in rate cut expectations for the Federal Reserve.

LiquidationKing

2025-12-25 00:26:28

Abstract generation in progress

Sterling continues its downward trajectory as markets grapple with an unconventional calendar of US employment figures. On Wednesday, GBP/USD registered losses totaling approximately 0.67%, retreating toward the 1.3060 level amid renewed selling pressure.

UK Inflation Data Fails to Support Currency

The Pound Sterling encountered resistance following the release of UK Consumer Price Index (CPI) inflation figures, which disappointed expectations of revitalizing demand for the currency. Rather than triggering a meaningful bounce, the CPI print pushed GBP into fourth consecutive session of declines, with Cable trading at multi-week lows after the announcement.

Stale NFP Timeline Creates Market Uncertainty

The labor market narrative has grown increasingly outdated due to an unexpected wrinkle in the US employment data calendar. The US Bureau of Labor Statistics announced the cancellation of October’s Nonfarm Payrolls (NFP) release, attributing the decision to insufficient data collection during the federal government shutdown. This gaps leaves traders in a peculiar situation where no October jobs data will be published—a scenario that historically generates caution.

Instead, Thursday’s release will deliver September’s NFP report, which market participants widely view as unlikely to command significant trading attention given the data void extending into the new year.

Rate Cut Odds Shift Dramatically

The delayed and stale employment calendar has prompted a reassessment of near-term monetary policy trajectories. According to the CME’s FedWatch Tool, market participants have reduced their expectations for a Federal Reserve (Fed) interest rate cut on December 10 to approximately 30%, a notable pullback from earlier convictions. This repricing reflects growing uncertainty about the Fed’s near-term direction when the coming months will lack fresh employment indicators.

The combination of depreciated sterling dynamics and recalibrated rate expectations underscores how disrupted data calendars can amplify currency volatility and reshape market positioning.

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