Recent U.S. employment data showing just 29,000 nonfarm payrolls added in September—well below forecasts—has sharply reduced October FOMC hike odds, easing pressure on GBP/USD near 1.3240. The Federal Reserve’s September 25-basis-point increase to a 3.75–4.00% target range created a temporary policy-rate advantage over the Bank of England’s steady 3.75% Bank Rate, contributing to sterling’s recent decline amid widening forward divergence priced by futures markets. UK inflation forecasts rising toward 3.7% in Q4 2026 and above 4% in early 2027, alongside a hawkish 6–3 BoE split, introduce offsetting support. Key near-term catalysts include the October 28 FOMC decision and November 5 BoE meeting, where shifts in rate-path expectations could drive meaningful moves in the pair before year-end.