GBP/USD trades with mild gains near 1.2725 despite the firmer US Dollar on Monday. The US economy created more jobs than expected in May, which dampened the expectation of Fed rate cuts in September. The stronger US employment report pared back Fed rate cut expectation, weighing on the Greenback. The upside of GBP/USD might be limited amid the lower bets of the US Federal Reserve rate cuts this year after the stronger-than-expected US Nonfarm Payrolls data.
The robust US employment report pared back rate cut expectations from the Federal Reserve on Thursday. Futures traders see almost no chance of a rate cut before September, according to data from CME Group. The higher-for-longer US rate mantra is likely to support the US Dollar for the time being. On the other hand, the UK Employment data on Tuesday, including Claimant Count Change, Employment Change, and Average Earnings data.