- Sterling plummeted to 1.2133 once the NFP figures were released.
- US November Nonfarm Payrolls beat estimates and wages rose.
- Traders focus on Chicago Fed’s Charles Evans speech around 15:00 GMT.
The pair GBP/USD it tumbled from near 1.2290 close to 100 points on a better than expected US labor market report, suggesting more central bank tightening is necessary. However, following the US jobs report, GBP/USD is quoting around 1.2215, after traveling towards its daily low of 1.2133, on market reaction to US headline data. ..
US equity futures hold lower after November non-farm payrolls will increase by 263,000, following an upward revision of the 284,000 jobs added in October, according to the Department of Labor. Going deeper into the information, the Unemployment Rate stood at 3.7%, while the Average Earnings per Hour pushed inflation upwards, with a jump of 5.1% year-on-year, compared to the 4.6% consensus. Given that the officials of the Federal Reserve (Fed) agreed that it is advisable to moderate the pace of rate hikes, it would be interesting to see the positions of Fed officials, led by Chicago Fed President Charles Evans, crossing the news around 15:00 GMT.
The Dollar Index (DXY), an indicator of the value of the dollar against a basket of six currencies, after reaching a six-month low of around 104,377, stars in a slight recovery and recovers the figure of 105,000, with a rise of 0.32%.
Aside from this, the weaker Institute for Supply Management (ISM) manufacturing PMI report for November reported signs of contraction in activity, souring sentiment, spurring flows to safety, except for US dollar (USD). Turning to inflation, the Fed’s preferred gauge, core Personal Consumption Expenditure (PCE) for October, rose 5% yoy, down from 5.2% the previous month, in line with estimates.
The absence of the UK economic calendar leaves the GBP/USD pair adrift from the dynamics of the US dollar. GBP/USD hit a fresh 5-month high at 1.2311, which was struck in a soft dollar after Federal Reserve Chairman Jerome Powell said moderation in the speed of rate hikes was “appropriate.” ” on Wednesday.
The US economic agenda will be attended by Chicago Fed President Charles Evans ahead of the Fed lockup period at the next monetary policy meeting in December.
GBP/USD Key Technical Levels
|Last price today||1.2209|
|Today I change daily||-0.0034|
|Today’s daily change in %||-0.28|
|today’s daily opening||1.2243|
|previous daily high||1.2311|
|previous daily low||1.2046|
|Previous Weekly High||1.2154|
|previous weekly low||1.1779|
|Previous Monthly High||1.2154|
|Previous monthly minimum||1.1147|
|Daily Fibonacci of 38.2%.||1,221|
|Daily Fibonacci of 61.8%||1.2147|
|Daily Pivot Point S1||1.2089|
|Daily Pivot Point S2||1.1935|
|Daily Pivot Point S3||1.1824|
|Daily Pivot Point R1||1.2354|
|Daily Pivot Point R2||1.2465|
|Daily Pivot Point R3||1.2619|
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.