GBP/USD refreshes daily top on dismal NFP print, struggles to find acceptance above 1.3300
|- GBP/USD attracted some dip-buying near mid-1.3200s and shot to a fresh daily high in the last hour.
- Disappointing headline NFP print prompted some USD selling and provided a modest lift to the pair.
- Brexit uncertainties, hawkish Fed expectations helped limit the USD losses and capped the upside.
The GBP/USD pair shot to a fresh daily high in reaction to dismal US jobs data, albeit struggled to capitalize on the move or find acceptance above the 1.3300 mark.
Having dropped to a three-day low earlier this Friday, the GBP/USD pair attracted some dip-buying in the vicinity of mid-1.3200s and got an additional boost during the early North American session. The latest leg of a sudden spike over the past hour or so followed the release of the closely-watched US NFP report, which showed that the economy added 210K jobs in November. This was well below consensus estimates pointing to a reading of 550K and the previous month's upwardly revised reading of 546K.
Additional details revealed that Average Hourly Earnings fell short of market expectations and led to a modest US dollar weakness, which, in turn, provided a goodish lift to the GBP/USD pair. However, the disappointment, to a larger extent, was offset by a larger than expected drop in the unemployment rate, which fell to 4.2% from 4.6% in October. Adding to this, the fact that the Fed has acknowledged a sufficient labor market recovery to permit higher interest rates helped limit any deeper losses.
On the other hand, persistent Brexit-related uncertainties continued acting as a headwind for the British pound. This was seen as another factor that kept a lid on any meaningful upside for the GBP/USD pair. This makes it prudent to wait for a strong follow-through buying beyond the 200-hour SMA, currently around the 1.3320-25 region, before positioning for any further appreciating move. Next on tap will be the release of the US ISM Services PMI, which might provide some impetus to the pair.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.