Forex - GBP/USD drops on U.S. jobs report, U.K. trade data

By
A A A
Share |

Investing.com - " The pound fell against the dollar on Friday after the U.S. October jobs report beat expectations while U.K. trade disappointed.

In U.S. trading on Friday, GBP/USD was trading at 1.6012, down 0.53%, up from a session low of 1.5958 and off from a high of 1.6105.

Cable was likely to find support at 1.5903, Monday's low, and resistance at 1.6118, Wednesday's high.

The Bureau of Labor Statistics reported earlier that the U.S. economy added 204,000 jobs in October, far surpassing expectations for a 125,000 increase.

The August figure was revised to 238,000 from 193,000, while the September figure was revised
to 163,000 from 148,000.

The U.S. unemployment rate ticked up to 7.3% last month from 7.2% in September, in line with expectations.

The figures fueled market sentiments that the Federal Reserve could announce plans to scale back its USD85 billion in monthly asset purchases possibly as soon as December.

Asset purchases aim to spur recovery by driving down long-term interest rates, weakening the dollar in the process, and talk of their dismantling strengthens the U.S. currency.

The better-than-expected October jobs report came a day after official data showed that the U.S. economy grew 2.8% on year in the third quarter, well beyond expectations for 2.0% growth.

Capping the dollar's advance, however, was the Thomson Reuters/University of Michigan's preliminary consumer sentiment index for November, which ticked down to 72.0 from 73.2 in October, disappointing expectations for a rise to 74.5.

Meanwhile in the U.K., official data showed that the U.K. trade deficit widened to GBP9.82 billion in September, from GBP9.56 billion the previous month, which was revised from a previously estimated deficit of GBP9.63 billion.

Analysts had expected the trade deficit to narrow to GBP9.20 billion in September.

The pound, meanwhile, was down against the euro and up against the yen, with EUR/GBP up 0.10% at 0.8346 and GBP/JPY up 0.49% at 158.65.








Investing.com
Investing.com offers an extensive set of professional tools for the financial markets.
Read more News on Investing.com and download the new Investing.com Stocks & Finance App for Android!



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

Referenced Stocks:

Investing.com

Investing.com

More from Investing.com:

Related Videos

Stocks

Referenced

Most Active by Volume

56,340,477
  • $61.70 ▲ 0.55%
25,210,017
  • $4.305 ▼ 2.60%
21,864,643
  • $87.23 ▲ 0.54%
21,575,603
  • $3.14 ▼ 0.95%
19,517,298
  • $16.34 ▼ 0.18%
12,210,531
  • $46.455 ▼ 2.06%
10,458,376
  • $25.83 ▼ 1.60%
10,337,212
  • $564.55 ▲ 7.58%
As of 4/24/2014, 10:22 AM