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Forex - GBP/USD remains slightly lower, downside seen limited

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Investing.com -

Investing.com - The pound remained slightly lower against the U.S. dollar on Friday, but losses were expected to remain limited as disappointing U.S. nonfarm payrolls data dented demand for the greenback.

GBP/USD hit 1.6556 during U.S. morning trade, the pair's lowest since March 26; the pair subsequently consolidated at 1.6572, falling 0.14%.

Cable was likely to find support at 1.6510, the low of March 26 and resistance at 1.6661, Thursday's high.

Demand for the greenback weakened after the Department of Labor said the U.S. economy added 192,000 jobs in March, confounding expectations for a 200,000 increase. February's figure was revised up to a 197,000 rise from a previously estimated 175,000 increase.

The private sector added 192,000 jobs last month, below expectations for a 195,000 rise, while February's figure was revised up to 188,000 jobs added from a previously estimated 162,000 increase.

The report also showed that the U.S. unemployment rate remained unchanged at 6.7% last month, disappointing expectations for a downtick to 6.6%.

In the U.K., official data earlier showed that the Halifax house price index declined by 1.1% in March, confounding expectations for a 0.7% rise, after a 2.4% increase the previous month.

Sterling was fractionally higher against the euro, with EUR/GBP inching down 0.08% to 0.8257.

The single currency remained under pressure after European Central Bank President Mario Draghi played down the risk of deflation in the euro zone on Thursday, but added that the bank has not ruled out further policy action, including quantitative easing.

Earlier Friday, official data showed that German factory orders rose rose 0.6% in February, exceeding expectations for a 0.1% gain. Factory orders in January were revised down to a 0.1% increase from a previously estimated 1.2% rise.

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


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

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