- The sterling pound (GBP) manages to recover some upward traction on Friday.
- The US dollar (USD) collapses to minimum daily after the disastrous NFP of July.
- The US economy added fewer jobs initially in July (73K).
The sterling pound earns traction and elevates the GBP/USD again to the positive territory beyond 1,3200 after the abrupt loss of impulse of the dollar after the publication of the US employment report.
The NFP weighs on the dollar
In fact, the dollar now faces a selling pressure wave after the US economy added only 73,000 jobs last month, notably below the 110,000 expected by analysts. The US unemployment rate rose to 4.2% (from 4.1%), which also contributes to the softer general tone of the report.
Meanwhile, the cable flirts with two -day maximums in response to the strong correction in the US dollar index (DXY), bouncing from a minimum of four months around the area of 1,3140, since investors seem to have begun to readjust a possible cutting cut by the Federal Reserve at its September meeting.
Technical panorama
If the losses extend, the GBP/USD could first revisit the July Valley in 1,3141 (August 1), just before the ground of May in 1,3139 (May 12). A continuous fall could bring back the 1.3000 key threshold.
On the other hand, the transient resistance is located in the SMAs of 100 days and 55 days in 1,3337 and 1,3505, respectively, before the weekly maximum of 1,3588 (July 24).
Non -agricultural payrolls – Frequently asked questions
Non -agricultural payroll (NFP) are part of the monthly employment report of the US Labor Statistics Office. The non -agricultural payroll component specifically measures the change in the number of people employed in the United States during the previous month, not including the agricultural sector.
The number of non -agricultural payroll (NFP) can influence the decisions of the Federal Reserve by providing a measure of the success with which the Fed is fulfilling its mandate to promote full employment and an inflation of 2%. A relatively high NFP figure means that there are more people used, earning more money and, therefore, probably spending more. A result of relatively low agricultural payrolls, on the other hand, could mean that people are having difficulty finding work. The Fed will normally increase interest rates to combat high inflation caused by low unemployment, and lower them to stimulate a stagnant labor market. “
Non -agricultural payrolls generally have a positive correlation with the US dollar. This means that when the figures are higher than expected, the dollar tends to rise and vice versa when they are minors. Non -agricultural payrolls influence the US dollar under its impact on inflation, monetary policy expectations and interest rates. A higher NFP generally means that the Federal Reserve will be more restrictive in its monetary policy, which will support the dollar.
Non -agricultural payrolls generally have a negative correlation with the price of gold. This means that a number of payroll greater than expected will have a depressive effect on the price of gold and vice versa. A higher NFP generally has a positive effect on the value of the US dollar and, like most main raw materials, gold is quoted in US dollars. Therefore, if the US dollar gains value, less dollars are required to buy an ounce of gold. In addition, higher interest rates (which generally helped a higher NFP) also reduce the attractiveness of gold as an investment compared to staying in cash, where money will at least generate interest. “
Non -agricultural payrolls are only a component within a broader employment report and can be seen eclipsed by other components. Sometimes, when non -agricultural payrolls are greater than expected, but the average weekly profits are lower than expected, the market has ignored the potentially inflationary effect of the main result and interprets the fall in profits as deflationary. The components of the participation rate and the average weekly hours can also influence the market reaction, but only in rare events such as the “great resignation” or the global financial crisis. “
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.
