GBP/USD bounces off 2-week lows post-NFP, but remains well below 1.3100 handle

   •  Awful headline NFP print prompts some immediate USD selling and provides a minor lift.
   •  Upbeat wage growth data/unemployment rate offset and helped limit USD downside.
   •  Brexit uncertainties continue to weigh on GBP and further collaborated towards capping.

The GBP/USD pair quickly recovered around 40-pips from two-week tops, albeit remained capped below the 1.3100 handle post-US monthly jobs report.

The US Dollar lost some additional ground following an awful headline NFP print, showing that the US economy added only 20K new jobs in February as compared to the previous month's upwardly revised figure of 311K. The reading was worse than 180K anticipated but was largely offset by a larger than expected fall in the unemployment rate and stronger wage growth data, which was evident from a subdued reaction in the US bond market.

Adding to this, renewed uncertainty over the UK's departure from the European Union, ahead of the fast-approaching deadline on March 29, held investors from buying the British Pound and further collaborated towards capping gains.

As Mario Blascak, FXStreet's own European Chief Analyst writes: “The Brexit re-negotiations are taking place in Brussels with the European Union said to make a new offer to the UK on Brexit backstop that is likely to fall short of the UK demands. With 21 days left before the UK is expected to officially depart from the European Union, the time is tight for any structural changes while the UK House of Commons is scheduled to vote on re-negotiated Brexit deal next Tuesday.”

With today's key US macro data out of the way, the incoming Brexit-related headlines might continue to act as an exclusive driver of the pair's momentum through the US session on the last trading day of the week. 

Technical levels to watch