GBP/USD sees pullback from 9-month high as US jobs data deteriorated

The Pound Sterling (GBP) pullback from a 9-month high against the US Dollar (USD) on Tuesday dropped below the 1.2500 figure due to the US dollar’s renewed strength. The US labour market continues to deteriorate, painting a gloomy scenario for the US economy. The GBP/USD is trading at 1.2422 after hitting a high of 1.2486

The GBP/USD drops as bad US jobs data underpin the dollar. Wall Street is trading with losses. The US Bureau of Labor Statistics showed that Initial Jobless Claims for the week ending on April 1 exceeded forecasts of 200K, with data hitting 228K.

Data linked to the labor market, namely the JOLTs job opening, ADP Employment Change, and the ISM Manufacturing PMI employment subcomponent, portrayed the labor market easing. That spurred an investor reaction, meaning that recessionary fears are the main reasons for the risk-off impulse seen in the last three days.