- Pound prints fresh highs across the board during the American session.
- US dollar consolidates post NFP losses, even as US yields rise sharply.
- GBP/USD up for the third day in a row, gains a hundred pips from a week ago.
The GBP/USD printed a fresh two-week high during the American session at 1.3874. it remains near the top, holding onto most of its daily and weekly gains, on the back of a weaker US dollar across the board.
The US employment numbers triggered a decline of the greenback, adding to weekly losses. The numbers showed hiring slowed in August to 235K, below the 750K expected; the unemployment rate dropped to 5.2% and wages rose 0.6%. “Wages continue to push higher as a result, but the dampened pace of hiring and bevy of workers still on the sidelines will keep the Fed awaiting more progress on the labor market. Today's report fully closed the door on the chance of a September taper announcement, in our view”, explains analysts at Wells Fargo.
The decline of the dollar took place even as US yields head higher. The US 10-year rose from 1.27% to 1.33%. In Wall Street, main stock indices are mixed for the day and the week. The DXY is off lows at 92.07, down 0.15%, on its way to the fourth decline in a row.
Technical outlook
“The "Death Cross" pattern triggered the 50-day Simple Moving Average (SMA) crossed below the 200-day SMA, implying further losses. Downside momentum adds to the gloomy picture. On the other hand, the currency pair has crossed above these two SMAs and seems stable”, says Yohay Elam, Senior Analyst at FXStreet.
He warns that cable has been trading within the wide 1.3570-1.40 range in the past two months, and every move to the edges has resulted in mean-reversion. According to him, support awaits at 1.3785, followed by 1.3670, while on the upside, resistance stands at 1.3895, followed by 1.4000.
Technical levels
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
EUR/USD retreats from daily highs, holds above 1.0800
EUR/USD loses traction but holds above 1.0800 after touching its highest level in three weeks above 1.0840. Nonfarm Payrolls in the US rose more than expected in June but downward revisions to May and April don't allow the USD to gather strength.
GBP/USD struggles to hold above 1.2800 after US jobs data
GBP/USD spiked above 1.2800 with the immediate reaction to the mixed US jobs report but retreated below this level. Nonfarm Payrolls in the US rose 206,000 in June. The Unemployment Rate ticked up to 4.1% and annual wage inflation declined to 3.9%.
Gold approaches $2,380 on robust NFP data
Gold intensifies the bullish stance for the day, rising to the vicinity of the $2,380 region following the publication of the US labour market report for the month of June. The benchmark 10-year US Treasury bond yield stays deep in the red near 4.3%, helping XAU/USD push higher.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
French Elections Preview: Euro to “sell the fact” on a hung parliament scenario Premium
Investors expect Frances's second round of parliamentary elections to end with a hung parliament. Keeping extremists out of power is priced in and could result in profit-taking on Euro gains.