• The Pound Sterling jumps to near 1.3160 against the US Dollar ahead of the US NFP report for September.
• The probability of the Fed cutting interest rates by an additional 75 bps by year-end has waned significantly.
• BoE’s Bailey emphasized the need to cut interest rates aggressively.

The Pound Sterling (GBP) finds buying interest near the round-level support of 1.3100 against the US Dollar (USD) in Friday’s London session. The GBP/USD pair moves higher to 1.3160 after a three-day losing spree. However, the near-term outlook of the pair is uncertain, with investors focusing on the United States (US) Nonfarm Payrolls (NFP) report for September, which will be released at 12:30 GMT.

Market participants will keenly focus on the US NFP data as it will provide fresh cues about current US labor market health. The US Federal Reserve (Fed) started its policy-easing cycle with a larger-than-usual interest rate cut of 50 basis points (bps) in September, with officials aiming to revive labor market strength amid a decline in price pressures.

The official employment data is expected to show that US employers hired 140K job-seekers, marginally lower than August’s reading of 142K. The Unemployment Rate is estimated to have remained steady at 4.2%.

Investors will also pay close attention to the Average Hourly Earnings data, a key measure of wage inflation that influences consumer spending, which is expected to have grown steadily by 3.8% year-over-year. The monthly wage growth measure is seen growing by 0.3%, slower than 0.4% in August.