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