• GBP/USD climbed above 1.2800 after US NFP figures sparked risk rally.
• Broad-market risk sentiment recovered on Friday as rate cut hopes reignite.
• Coming up next week, Fed Chair Powell appearance, US CPI, UK industrial activity.

GBP/USD rallied back over the 1.2800 handle on Friday, bolstered by a broad-market risk appetite recovery fueled by reinvigorated rate cut hopes. Investors are betting that the Federal Reserve (Fed) will be pushed further towards rate cuts in the third quarter after US Nonfarm Payrolls (NFP) labor figures gave a lopsided print, beating forecasts but carrying steep revisions to previous figures.

Read more: US Nonfarm Payrolls increase 206,000 in June vs. 190,000 forecast

The UK’s latest Parliamentary Election came and went with little market volatility. The British populace swept in the UK Labour Party’s Kier Starmer as the next Prime Minister, casting out Rishi Sunak after 14 years of Conservative Party leadership and its revolving door of leaders. GBP traders will be buckling down for the long wait to next week’s UK Industrial Production figures for May, which are expected to rebound after a firm contraction in April.

Friday’s US NFP beat median market forecasts, adding 206K net new jobs in June. While the figure handily beat the expected 190K, the previous month saw a sharp downside revision to 218K from the initial print of 272K.