# Sterling tumbles as solid U.S. payrolls data firms Fed rate-hike view

> The pound fell more than 1% to $1.2030 after US nonfarm payrolls rose by 528,000 in July, well above forecasts. The data strengthened the case for another large Federal Reserve rate hike, and the Bank of England's slower tightening and weak UK outlook also weighed on sterling.

- Date: 2022-08-05 · published 2022-08-05T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/40288-sterling-tumbles-as-solid-u-s-payrolls-data-firms-fed-rate-hike-view
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Stronger US data supports a firmer dollar and raises the rate-hike outlook, which tends to weigh on dollar-priced commodities. The effect on feed prices is indirect.

## Read by commodity

- DXY: bullish ▲
- GBPUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-06-13 | [Dollar mostly firmer as Fed sees more U.S. rate hikes \| Reuters](https://feedsoft.ai/events/64708-dollar-mostly-firmer-as-fed-sees-more-u-s-rate-hikes-reuters.md) | +1.3% | +0.6% |
| DXY | 2025-01-07 | [Dollar firms as solid US data suggests Fed likely to slow easing cycle \| Reuters](https://feedsoft.ai/events/26419-dollar-firms-as-solid-us-data-suggests-fed-likely-to-slow-easing-cycle-reuters.md) | +1.2% | -0.3% |
| DXY | 2022-01-28 | [Sterling hits year low vs dollar on Fed rate hike fears and UK political risks](https://feedsoft.ai/events/43376-sterling-hits-year-low-vs-dollar-on-fed-rate-hike-fears-and-uk-political-risks.md) | -0.9% | -0.6% |
| DXY | 2023-03-02 | [Dollar firms after U.S. labor data suggests more rate hikes \| Reuters](https://feedsoft.ai/events/37076-dollar-firms-after-u-s-labor-data-suggests-more-rate-hikes-reuters.md) | +0.7% | -0.8% |
| DXY | 2026-06-24 | [U.S. dollar rises to 13-month high on Fed rate hike views](https://feedsoft.ai/events/11992-u-s-dollar-rises-to-13-month-high-on-fed-rate-hike-views.md) | -0.1% | -0.4% |

## Sources

- reuters.com: https://www.reuters.com/markets/europe/sterling-creeps-lower-vs-dollar-after-boes-gloomy-outlook-2022-08-05/?taid=62ed38afdd0cfc000118352e

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.