GBP/USD surges to one-week high as weak ADP data and US government shutdown dent Dollar
- GBP/USD climbs to a one-week high, its strongest since September 24, as the US Dollar weakens broadly.
- The ADP report showed US private-sector jobs fell by 32K in September.
- S&P Global Manufacturing PMI held steady at 52, while ISM Manufacturing PMI rose modestly to 49.1 but remained in contraction
The British Pound (GBP) advances sharply against the US Dollar (USD) on Wednesday, with GBP/USD climbing to a one-week high, reaching its strongest level since September 24, as the Greenback remains under broad pressure amid a weaker-than-expected ADP Employment Change report, the ongoing United States (US) government shutdown, and mounting bets on further Federal Reserve (Fed) interest rate cuts.
At the time of writing, GBP/USD is trading around 1.3512, extending its winning streak for a fourth day with a gain of 0.50%. Meanwhile, the US Dollar Index (DXY), which measures the Greenback’s performance against a basket of six major currencies, is hovering near 97.50, close to a one-week trough.
Data released by payroll processor ADP on Wednesday showed private sector employment declined by 32,000 jobs in September, defying expectations for a 50,000 gain. Adding to the downside surprise, August’s figure was revised sharply to show a 3,000 decline from the previously reported 54,000 increase.
Commenting on the release, Nela Richardson, Chief Economist at ADP, said, "Despite the strong economic growth we saw in the second quarter, this month’s release further validates what we’ve been seeing in the labor market, that US employers have been cautious with hiring".
The weak ADP data came as the US government shutdown cast doubt over Friday’s Nonfarm Payrolls (NFP) release, boosting the report’s significance for markets.
Meanwhile, the S&P Global US Manufacturing Purchasing Managers Index (PMI) for September held steady at 52, matching both forecasts and the previous month’s reading, signaling that the sector remains in modest expansion. However, the more closely watched ISM Manufacturing PMI rose only slightly to 49.1, just above expectations of 49 and up from August’s 48.7.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.15% | -0.53% | -0.82% | 0.07% | -0.05% | -0.55% | 0.03% | |
| EUR | 0.15% | -0.36% | -0.69% | 0.21% | 0.12% | -0.37% | 0.17% | |
| GBP | 0.53% | 0.36% | -0.28% | 0.58% | 0.49% | -0.00% | 0.55% | |
| JPY | 0.82% | 0.69% | 0.28% | 0.91% | 0.76% | 0.50% | 0.94% | |
| CAD | -0.07% | -0.21% | -0.58% | -0.91% | -0.11% | -0.60% | -0.04% | |
| AUD | 0.05% | -0.12% | -0.49% | -0.76% | 0.11% | -0.49% | 0.06% | |
| NZD | 0.55% | 0.37% | 0.00% | -0.50% | 0.60% | 0.49% | 0.56% | |
| CHF | -0.03% | -0.17% | -0.55% | -0.94% | 0.04% | -0.06% | -0.56% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Author
Vishal Chaturvedi
FXStreet
I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.
