GBP/USD falls to new four-day lows on a soft US jobs report as the US Dollar climbs

GBP/USD tumbled on an initial reaction to the headline.
US Nonfarm Payrolls for March came below estimates, but the US Dollar rallied.
Average Hourly Earnings came a tick lower, while the Unemployment Rate was unchanged.

Christian Borjon Valencia FXStreet

GBP/USD tumbles on a worse-than-expected US Nonfarm Payrolls report, with the US economy adding fewer jobs than analysts’ consensus. However, the initial reaction favored the US Dollar (USD). At the time of writing, the GBP/USD trades volatile around the 1.2450-1.2370 range, below its opening price.

US Nonfarm Payrolls below estimates, but the greenback rises

Delving into March’s Nonfarm Payrolls data, the US Bureau of Labor Statistics (BLS) revealed the creation of fewer than 240K employments estimated, increased by 236, and trailed February’s 311K. Average Hourly Earnings, estimated at 4.3%, came at 4.2%, and the Unemployment Rate was at 3.5%YoY, below the expected 3.6%.

GBP/USD 1-Hour Chart Reaction

The GBP/USD printed a new four-day low, at 1.2389, in a perception that the report was soft, but not as probably estimated to be a scenario that could weaken the USD. The GBP/USD tumbled below the S1 daily pivot, at 1.2405, with traders eyeing the S2 daily pivot at 1.2370.

GBP/USD

Overview
Today last price	1.2429
Today Daily Change	-0.0011
Today Daily Change %	-0.09
Today daily open	1.244

Trends
Daily SMA20	1.2274
Daily SMA50	1.2155
Daily SMA100	1.2154
Daily SMA200	1.1901

Levels
Previous Daily High	1.2487
Previous Daily Low	1.2413
Previous Weekly High	1.2424
Previous Weekly Low	1.2219
Previous Monthly High	1.2424
Previous Monthly Low	1.1803
Daily Fibonacci 38.2%	1.2441
Daily Fibonacci 61.8%	1.2459
Daily Pivot Point S1	1.2406
Daily Pivot Point S2	1.2372
Daily Pivot Point S3	1.2332
Daily Pivot Point R1	1.248
Daily Pivot Point R2	1.2521
Daily Pivot Point R3	1.2554

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

AUD/USD flirts with 0.7000, lowest since early August amid bullish USD

AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight. Against the backdrop of the hawkish Fed, a two-day rally in oil prices revives inflation fears and continues to push US bond yields to multi-year highs. Adding to this, geopolitical risks lift the US Dollar to a two-month high, overshadowing RBA rate hike bets and weighing on the pair.

USD/JPY pulls back from three-week high after failing near 159.00

USD/JPY edges lower during the Asian session on Friday, stalling its recent strong move to a three-week high of 159.00 as Japanese Yen bears turn cautious amid intervention fears. Meanwhile, the US Dollar retains a strong bullish undertone as the Fed's hawkish outlook and oil-driven inflation fears continue to push US bond yields to multi-year peaks. Furthermore, the BoJ's dovish rate hike last week might cap JPY and support spot prices.

Gold extends the range play below $4,300 as Fed hike bets counter modest USD pullback

Gold struggles to gain any traction and remains confined in a narrow range near the weekly low through the early European session on Friday amid a bearish fundamental backdrop. The US Dollar pulls back slightly following a strong rally to a nearly two-month high and offers some support to the commodity. However, the US Federal Reserve's hawkish outlook, elevated US bond yields, and persistent geopolitical uncertainties favor USD bulls.

Ripple, Cardano, Solana: ETF inflows and whale demand signal further rally

Ripple (XRP), Cardano (ADA), and Solana (SOL) continue to experience a steady recovery with double-digit gains so far this month. Ripple and Solana experience firm institutional demand, while the percentage of ADA supply in profit rises, underpinned by interest from large-wallet investors, commonly referred to as whales.

The Dollar is winning, but markets may be losing

The dollar is strengthening, Treasury yields are approaching levels not seen in almost two decades, and oil prices are again adding to inflation concerns. For currency traders, these developments appear to offer a relatively straightforward conclusion: higher US interest rates should support the dollar. But the broader market picture is considerably more complicated.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.