GBP/USD rallied sharply near 1.50% on disappointing US ISM data. Hawkish Fed call failed to weigh on GBP/USD. Next week’s economic calendar includes reports on GDP and US CPI. , The British pound (GBP) extended its gains against the US dollar (USD), rising more than 160 points on Friday after a disappointing ISM Services report and an earlier jobs report. GBP/USD is trading at 1.2077. US ISM SERVICES INDEX WENT AND WEAKENED GBP / USD again weighed more than 100 points after the release of US Nonfarm Payrolls data. Later, the Institute for Supply Management (ISM) published service PMI, which fell to 9.6, down from a forecast of 55, and down from November’s jump of 56.5. I must say that this is the lowest reading since May 2020 and traders should be concerned that PMI readings below 50 indicate a contraction. , The US Department of Labor reported earlier that the US economy added more jobs than expected and the unemployment rate fell. The focus of the report was on average hourly wages, which showed that wage inflation slowed to .6 percent from a year earlier, below estimates of 5.0 percent. Read also: GBP/USD shares Thursday’s losses at $1.1900 after US NFP report GBP/USD extended its gains above 1.2050 after ISM Services PMI headline topped the news. The US dollar index, which tracks the value of the US dollar (USD) against a basket of benchmarks, fell more than 1% to 10 ,000. Meanwhile, fresh talks from the Federal Reserve did not support the US dollar, as Fed Governor Lisa D. Cooks said inflation is „too high” and a „major concern” despite recent reports. Meanwhile, Richmond Federal Reserve President Thomas Barkin said the Fed is still bullish on inflation and will have to remain so until inflation is „sustainably” back to the 2 percent target. He added that a more gradual convergence of interest rates will limit the damage to the US economy. Next week’s UK calendar would include retail sales, gross domestic product and trade balance. On the US front, its calendar includes the Consumer Price Index (CPI), unemployment benefits and University of Michigan (UoM) consumer sentiment.