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Forex - GBP/USD hits 6-week high after U.S. data

Published 04/05/2013, 10:29 AM
Updated 04/05/2013, 10:30 AM
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Investing.com - The pound rose to a six-week high against the U.S. dollar on Friday, as disappointing employment data from the U.S. added to concerns over the strength of the U.S. job market's recovery.

GBP/USD hit 1.5327 during U.S. morning trade, the pair's highest since February 19; the pair subsequently consolidated at 1.5310, climbing 0.51%.

Cable was likely to find support at 1.5178, the low of April 1 and resistance at 1.5451, the high of February 20.

In a report, the U.S. Bureau of Labor Statistics said the economy added 88,000 jobs in March, far less than the expected 200,000 increase, after 268,000 jobs were created the previous month.

The private sector added 95,000 jobs last month, after an increase of 254,000 in February, compared to expectations for a 209,000 rise.

The report also showed that the U.S. unemployment rate ticked down to 7.6% in March, from 7.7% the previous month. Analysts had expected the unemployment rate to remain unchanged last month.

Separately, official data showed that the U.S. trade deficit narrowed unexpectedly in February, improving to USD43 billion from a deficit of USD44.5 billion the previous month. Analysts had expected the trade deficit to widen to USD44.6 billion in February.

Earlier in the day, data showed that house prices in the U.K. rose 0.2% in March, in line with expectations, after a 0.5% increase the previous month.

Sterling was fractionally lower against the euro with EUR/GBP edging up 0.02%, to hit 0.8493.

Sentiment on the euro remained fragile after official data showed that the bloc's gross domestic product contracted by 0.6% in the fourth quarter, in line with expectations.

A separate report showed that retail sales in the euro zone fell 0.3% in February, more than the expected 0.2% decline, after a 0.9% rise the previous month.


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