- GBP/USD trades on a stronger note near 1.2663 in Friday’s early Asian session.
- The US labour market remains robust, with jobless claims declining.
- The UK preliminary Manufacturing PMI for February came in at 47.1 versus 47.0, better than expected.
The GBP/USD pair posts modest gains above the mid-1.2600s during the early Asian trading hours on Friday. The decline of the US Dollar (USD) provides some support to the major pair. At press time, GBP/USD is trading at 1.2663, adding 0.02% on the day.
The US Initial Jobless Claims for the week ending February 17 fell to 201K from the previous weeks of 213K. Continuing Claims dropped to 1.862M, below expectations and the prior week. The report suggested the US labor market remains robust and might convince the Federal Reserve (Fed) to delay cutting interest rates.
Investors have pushed back their expectations for the first rate cut from the Fed to June from May due to a solid job market and hotter-than-expected inflation readings in January.
On Thursday, the US Manufacturing PMI improved to 51.5 in February from 50.7 in the previous reading, better than the estimation of 50.5, the highest reading in 16 months. Meanwhile, the Services PMI eased to 51.3 in February from 52.5 in January, weaker than 52.00 expected.
On the Pound Sterling front, the UK preliminary Manufacturing PMI for February came in at 47.1 versus 47.0, missing market expectations of 47.5. The Services PMI was unchanged at 54.3 but above the consensus of 54.1. Finally, the Composite PMI arrived at 53.3, against expectations and the previous reading of 52.9.
Moving on, investors will take more cues from the Fed Christopher J. Waller speech on Friday. Next week, the US Gross Domestic Product Annualized (GDP) for the fourth quarter will be released.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds below 0.6750 on US Dollar recovery
The AUD/USD pair edges lower to 0.6745, snapping the four-day winning streak during the early Asian session on Monday. The renewed US Dollar demand amid the cautious mood weighs on the pair.
EUR/USD weakens below 1.0850 as the leftist New Popular Front leads exit poll in French election
The EUR/USD pair trades on a weaker note near 1.0830 on Monday during the early Asian trading hours. The political uncertainty in France after the second voting round of French parliamentary elections on Sunday exerts some selling pressure on the Euro.
Gold edges lower below $2,400, PBoC refrains from gold purchases for second month
Gold price attracts some sellers near $2,385, snapping the three-day winning streak during the early Asian trading hours on Monday. The downtick of the yellow metal is backed by the modest rebound of the Greenback and the Chinese central bank paused Gold buying for the second month.
Ethereum records another day of heavy liquidations as Mt. Gox bearish pressure persists
Ethereum is down nearly 5% on Friday following the Mt. Gox BTC repayment, sparking more than $108 million in ETH liquidations. The repayment's supply strengthened the bearish momentum on Bitcoin, which spiraled into altcoins like ETH.
French election: It’s all over for Marine Le Pen, but the left weighs on the Euro
The deciding vote in the French Parliamentary elections closed this evening, and the exit poll suggests a shock result. The winning party is the left alliance, the popular front, which was pulled together to try and keep Le Pen’s far right National Rally party out of power.