The GBPUSD pair hovers near 1.3570, just below its 28-month high of 1.3616 reached on June 5, as markets await the U.S. Nonfarm Payrolls data. The U.S. Dollar Index (DXY) trades higher around 98.80, with NFP expectations pointing to a 130,000 job gain in May, down from April’s 177,000. Unemployment is forecast to remain at 4.2%. Weaker-than-expected ADP and jobless claims data have added to market caution. UBS economist Paul Donovan flagged rising risks of a policy misstep by the Fed due to lagging and unreliable data. Meanwhile, GBP finds support from improved UK market sentiment after President Trump temporarily suspended 50% U.S. tariffs on UK steel and aluminium, offering a breather to British exporters.

London equities ended on a higher note on Thursday. The FTSE 100 index finished up 17.87 points at 8,828.91. The FTSE 250 ended 6.07 points higher at 21,075.45, while the AIM All-Share closed 1.64 points up at 756.10. The Cboe UK 100 ended 0.25% higher at 878.89, the Cboe UK 250 closed 0.04% up at 18577.47, and the Cboe Small Companies ended higher at 18577.47.