US Jobs Data Disappoints, GBP/USD Recovers Losses Today
The Pound Sterling to US Dollar (GBP/USD) exchange rate was able to stabilise as trading continued and the US Non-Farm Payrolls report disappointed forecasts.
The nation was shown to have added just 223,000 positions in June following a negatively revised increase of 254,000 jobs in May.
Average earnings also fell from 2.3% to 2.0% unexpectedly.
While the nation’s unemployment rate did ease from 5.5% to 5.3%, this was largely due to a slump in the participation rate.
The US Dollar proved pretty resilient following the data release, posting fairly modest losses, although the safe-haven asset did decline modestly against the Pound.
The Pound Sterling to US Dollar exchange rate returned to trending in the region of 1.56.
Earlier…
The Pound Sterling to US Dollar (GBP/USD) exchange rate dipped to 1.55 on Thursday and could even slide as low as 1.54 if today’s US employment data beats forecasts. Meanwhile, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate advanced in response to poor domestic trade data.
Pound Sterling to US Dollar (GBP/USD ) Exchange Rate Forecast: ‘Cable’ Trends at Two-Week Low on US Employment Hopes, Improved Federal Reserve Interest Rate Hike Bets
The Pound Sterling to US Dollar (GBP/USD) exchange rate tumbled to a two-week low on Wednesday as investors ditched the Pound following a soft UK Manufacturing PMI print.
Further GBP/USD exchange rate declines occurred in response to the US ADP Employment Change and ISM Manufacturing reports – both of which printed more strongly-than-forecast.
With the labour market improving and the manufacturing sector performing well, the prospect of the Federal Reserve increasing interest rates in September of this year is looking more likely.
A sub-par UK house price report put further downward pressure on the GBP/USD exchange rate and the pairing later failed to benefit from an upbeat Markit Construction PMI.
We could see the Pound Sterling to US Dollar exchange rate fall to fresh lows later today if the US Non-Farm Payrolls report shows a better-than-predicted jobs gain. A figure of more than 250,000 would drive the ‘Greenback’ higher.
The Pound Sterling to US Dollar (GBP/USD) exchange rate hit a low of 1.5578
Pound Sterling to Australian Dollar Exchange Rate Forecast: Aussie Trade Data Drives GBP/AUD to 71-Month Low Today
Sterling might not have been performing very well against the US Dollar, but the Pound to Australian Dollar (GBP/AUD) exchange rate was able to advance by almost 0.5% on Thursday.
While the UK’s positive Construction PMI helped the Pound recover the losses inspired by Wednesday’s Manufacturing stat, the ‘Aussie’ tumbled in response to disappointing domestic trade numbers.
In May Australia posted a wider-than-expected deficit of 2.75 billion Dollars.
According to currency strategist Sue Trinh, the Australian Dollar’s declines occurred as ‘broad-based US Dollar strength dominated the early Asian session, following through from the north American session.’
She said of the trade report; ‘The data continues to highlight the terms of trade and national income challenge with the improvement in the deficit largely driven by weaker imports across the board, which is consistent with softer domestic demand.’
Buoyant US jobs numbers could drive the Australian Dollar lower still by helping support the case for higher borrowing costs in the US and reducing demand for riskier assets.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate advanced to a high of 2.0544
GBP/USD, GBP/AUD Exchange Rate Forecast: Australian Retail Sales, UK Services PMI Predicted to Impact Currency Movement
As US markets are closed tomorrow for the Independence Day national holiday, any movement in the Pound Sterling to US Dollar (GBP/USD) exchange rate is likely to be the result of the UK’s Services PMI.
An increase in output is forecast and if the estimation is accurate the Pound could recover some of today’s losses against the ‘Greenback’.
Meanwhile, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate may extend gains if Australia’s retail sales report fails to show the 0.5% month-on-month growth expected for May.
The Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5591 while the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trading in the region of 2.0509
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