The GBP/USD pair quickly reversed the post-NFP dip to sub-1.3900 levels and rallied around 35-40 in the last hour, albeit lacked any follow-through buying. The pair was last seen trading around the 1.3905-10 region, still down nearly 0.15% for the day. The US dollar added to its modest intraday gains and shot to over one-week tops following the release of a stronger-than-expected US monthly jobs report. The headline NFP print showed that the US economy added 943K new jobs in July, surpassing even the most optimistic estimates.
Adding to this, the previous month's reading was also revised higher to 938K as against 850K reported earlier. This was accompanied by a larger-than-anticipated fall in the unemployment rate from 5.9% reported in June to 5.4%, beating consensus estimates pointing to a dip to 5.7%. The data further cemented market expectations that the Fed will tighten its monetary policy earlier than anticipated and pushed the US Treasury bond yields higher across the board. In fact, the yield on the benchmark 10-year US government bond surged back closer to the 1.28% threshold.