NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Forex - GBP/USD drops as dollar firms on strong U.S. jobs data

Published 10/03/2014, 12:22 PM
Updated 10/03/2014, 12:23 PM
Pound drops on soft U.K. service-sector data, strong U.S. jobs report
GBP/USD
-
EUR/GBP
-
GBP/JPY
-

Investing.com - A robust U.S. jobs report coupled with a soft U.K. service-sector gauge sent the pound dropping to near 11-month lows against the dollar on Friday.

In U.S. trading on Friday, GBP/USD was down 1.14% at 1.5932, up from a session low of 1.5953 and off a high of 1.6159.

Cable was likely to find support at 1.5852, the low from Nov. 12, 2013, and resistance at 1.6288, Tuesday's high.

The Department of Labor reported earlier that the U.S. economy added 248,000 jobs in September, far more than the expected 215,000 increase. The number of jobs created in August was revised to 180,000 from a previous estimate of 142,000.

In addition, the U.S. unemployment rate ticked down to 5.9% last month from 6.1% in August.

Analysts had expected the rate to remain unchanged, and the numbers boosted the dollar by cementing expectations for the Federal Reserve to close its monthly bond-buying program later this month and begin hiking interest rates in 2015 sooner than once anticipated.

Elsewhere, the Institute of Supply Management said its non-manufacturing purchasing managers' index slipped to 58.6 in September from a reading of 59.6 in August. Analysts had expected the index to fall to 58.5 last month.

A separate report showed that the U.S. trade deficit narrowed to $40.10 billion in August from $40.30 billion in July, whose figure was revised from a previously estimated deficit of $40.60 billion.

Analysts had expected the trade deficit to widen to $40.90 billion in August.

Soft data out of the U.K. weakened the pound as well.

Markit Economics reported earlier that its U.K. services PMI slipped to 58.7 in September from 60.5 in August. Analysts had expected the index to tick down to 59.1 last month.

Elsewhere, sterling was up against the euro, with EUR/GBP down 0.08% at 0.7841, and up against the yen, with GBP/JPY up 0.06% at 175.20.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.