Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Forex - Pound hits 3-1/2 lows against broadly stronger dollar

Published 07/05/2013, 10:18 AM
Updated 07/05/2013, 10:20 AM
GBP/USD
-
EUR/GBP
-
Investing.com - The pound tumbled to three-and-a-half month lows against the U.S. dollar on Friday, as upbeat U.S. employment data lent broad support to the greenback due to growing expectations for a near-term end to the Federal Reserve's stimulus program.

GBP/USD hit 1.4859 during U.S. morning trade, the pair's lowest since March 12; the pair subsequently consolidated at 1.4896, plummeting 1.16%.

Cable was likely to find support at 1.4832, the low of March 12 and resistance at 1.5079, the session high.

The greenback found support after the Bureau of Labor Statistics said the U.S. economy added 195,000 jobs in June, more than the expected 165,000 increase, after 195,000 jobs were created in May.

The report also showed that the U.S. unemployment rate remained unchanged at 7.6% last month, disappoiting expectations for a decline to 7.5%.

The data added to speculation that the Fed may soon decide to unwind its USD85 billion-a-month bond-buying program after a report on Wednesday showed that the U.S. private sector added 188,000 jobs in June, more than expectations for an increase of 160,000.

Sterling was lower against the euro with EUR/GBP advancing 0.60%, to hit 0.8619.

Also Friday, official data showed that German factory orders dropped 1.3% in May, confounding expectations for a 1.2% increase, after a 2.2% decline the previous month.


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.