- The Pound has trimmed post-NFP lows and is virtually flat on the daily chart.
- Non-Farm Payrolls data show that the US economy continues to create jobs at a good pace.
- The fragile economic outlook and lower inflationary pressures weigh on the pound.
The Pound is recovering lost ground in Friday's US session after a major reversal, as good US employment data boosted the US Dollar. The pair, however, remains virtually flat in the weekly chat, having seen ups and downs in recent days.
US Nonfarm Payrolls rose by 303,000 in March, beating expectations for an increase of 200,000 to close out a stellar quarter for employment. Wage inflation has continued to rise, although the moderation seen in the annual rate, which has fallen to 4.1% from 4.3% the previous month, has allayed concerns about an aggressive stance from the Federal Reserve.
In the UK, weak data on services sector activity released this week adds to evidence of an uncertain economic outlook. Weak GDP and slowing price pressure fueled speculation that the BoE may anticipate the first rate cuts, which is weighing on the pound.
The technical picture remains bearish, with resistance at 1.2675 keeping buyers ahead of 1.2755. Support levels are 1.2575 and 1.2535.
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.
