- 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.
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.
Today’s Last Price 1.3643
Daily Rate 0.0023
Today’s Daily Rate % 0.17
Daily Open 1.362
20 Daily SMA 1.3667
50 Daily SMA 1.3749
100 Daily SMA 1.3851
SMA of 200 Daily 1.3845