Economy Forex News

GBP/USD jumps to 10-day highs above 1.3650 after NFP

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  • GBP/USD attracted some downside buying on Friday amid a modest pullback in the USD following the NFP report.
  • US economy added only 194,000 jobs in September; unemployment rate fell below 5%.
  • Higher US bond yields helped limit deeper USD losses and capped the pair higher.

GBP/USD gained some positive traction in the last hour and soared to 10-day highs above the 1.3655 area in reaction to mixed US jobs numbers.

GBP/USD

MetaNews.

During the last day of the week, the GBP/USD pair attracted some buying near the 1.3580-85 region. And turned positive for the second day in a row.

Afterward this also marked the sixth day of a rally in the previous seven and received an additional boost from modest weakness in the US dollar during the early North American session.

A disappointing headline NFP report led to declines in dollar prices and showed that 194,000 new jobs were created in September.

A revision to the previous month’s reading partially offset the decline. Which afterward was far below consensus expectations of an increase of 500,000.

Additional details revealed that the unemployment rate fell below the 5.0% mark for the first time since the start of the pandemic in March 2020. Despite the poor data, the Fed expected to start reducing its bond purchases shortly.

Also the Fed will possibly raise interest rates in 2022 despite the pressure on the economy.

This was reinforced by a rather muted reaction in money markets. In fact, the yield on the benchmark 10-year U.S. government bond held steady near four-month highs around 1.59%. In turn, this continued to act as a tailwind for the dollar and limited any out-of-control rallies in the GBP/USD pair.

Technical levels

OVERVIEW
Today’s Last Price 1.3643
Daily Rate 0.0023
Today’s Daily Rate % 0.17
Daily Open 1.362

TRENDS
20 Daily SMA 1.3667
50 Daily SMA 1.3749
100 Daily SMA 1.3851
SMA of 200 Daily 1.3845

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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