Sterling Extends Losses as Markets Brace for Delayed Employment Data

GBP/USD slides deeper into weakness, shedding roughly 0.67% on Wednesday as investor sentiment turns increasingly cautious ahead of delayed labor market releases. The Cable pair retreated toward the 1.3060 level, marking its fourth consecutive session in negative territory, signaling persistent bearish momentum across forex markets.

UK Inflation Disappoints, Leaving Sterling Adrift

The release of British Consumer Price Index (CPI) figures on Wednesday did little to reignite interest in the British currency. Rather than delivering the catalyst needed to reverse recent declines, the inflation print only accelerated selling pressure, pushing Pound Sterling to multi-week lows. The lack of support from domestic data underscores growing uncertainty about the Bank of England’s next policy moves.

Fed Policy Outlook Shifts as NFP Data Collection Stalls

A critical backdrop to sterling’s weakness is the disruption to US economic data collection. The US Bureau of Labor Statistics has announced the postponement of October’s Nonfarm Payrolls (NFP) report due to the federal government shutdown, creating an unusual gap in employment information. This data void is already reshaping Fed rate-cut expectations across forex and fixed income markets.

The CME FedWatch Tool reveals a notable shift in December rate-cut odds, which have compressed to approximately 30%—reflecting market participants’ revised assessment of monetary policy timing. With October’s NFP figure now unavailable, policymakers will navigate through the year-end period with limited fresh employment signals, leaving the forex market in a state of heightened anticipation.

September NFP Report Arrives, But Impact Remains Muted

Thursday’s release of September’s NFP jobs data is slated for publication, yet market participants are already bracing for limited impact. The delay in October data means this backward-looking report may struggle to capture sustained trading attention, particularly as the absence of more recent labor metrics leaves central banks operating in a data vacuum extending into the new year. For forex traders monitoring nfp releases and broader economic indicators, the combination of delayed employment figures and shifting Fed expectations continues to weigh on sterling sentiment.