Pound Jumps, Nearing $1.60 After U.S. Job Data Trails Estimates

The pound jumped to a six-month high against the dollar, capping its fourth straight weekly gain, after a report showed the U.S. economy lost more jobs than analysts estimated last month.

The U.K. currency, which came within 0.01 cent of $1.60, slipped against the euro. U.S. nonfarm payrolls fell by 131,000 in July, compared with a median forecast of a 65,000 decline in a Bloomberg News survey of 84 economists. The data fueled speculation that a fragile recovery may force the Federal Reserve to provide more economic stimulus, and sent the dollar down against most of the world’s major currencies.