NFP Trading Outlook Dims as GBP/USD Extends Downtrend Following Weak UK Inflation Data

Cable currency faced mounting selling pressure on Wednesday, dropping roughly 0.67% and settling near the 1.3060 mark. The decline intensified following disappointing UK Consumer Price Index (CPI) figures that failed to provide the anticipated support for Pound Sterling valuations, extending GBP/USD’s fourth consecutive daily loss to multi-week lows.

Data Void Creates NFP Trading Uncertainty

The upcoming economic calendar presents a significant challenge for NFP trading strategies. The US Bureau of Labor Statistics has announced the cancellation of October’s Nonfarm Payrolls release, attributed to incomplete data collection during the federal shutdown. This gap in employment figures has already influenced rate expectations, with December interest rate cut probabilities declining sharply.

According to CME FedWatch metrics, the probability of a Federal Reserve rate reduction on December 10 has compressed to approximately 30%, a notable shift from previous expectations. Traders monitoring NFP trading setups face an extended information drought, as the next relevant employment data—September’s figures—arrives Thursday but carries limited market-moving potential given the October void.

Near-Term Outlook and Trading Implications

The absence of October NFP data leaves policymakers without crucial employment metrics through year-end, effectively limiting data-dependent trading opportunities. GBP/USD’s technical breakdown reflects broader risk-off sentiment, with Sterling unable to capitalize on mixed CPI signals. Cable’s extended slide suggests further downside exposure remains likely until clearer economic visibility returns to the NFP trading landscape.

Daily chart patterns confirm the bearish structure, reinforcing selling interest at current levels. Market participants engaged in NFP trading should monitor policy communication closely, as verbal guidance may fill the void left by delayed employment statistics.