GBP/USD spikes to over one-week tops, around 1.3970 on weaker NFP report

GBP/USD rallied to over one-week tops amid dismal NFP-led broad-based USD selloff.
The US economy added 266K jobs in April and the jobless rate ticked higher to 6.1%.

Haresh Menghani FXStreet

The GBP/USD pair caught some aggressive bets during the early North American session and shot to over one-week tops, around the 1.3970 region in reaction to the dismal US jobs report.

The headline NFP showed that the US economy added only 266K new jobs in April as compared to consensus estimates pointing to a reading of nearly one million. Adding to this, the previous month's reading was also revised down to 770K from 916K reported previously and the unemployment rate unexpectedly edged higher to 6.1% from 6.0% in March.

The disappointing details reaffirmed market expectations that the Fed will keep interest rates low for a longer period and triggered some aggressive selling around the US dollar. This, in turn, was seen as a key factor that provided a modest lift to the GBP/USD pair. However, the uncertainty over the outcome of the Scottish election might cap the upside.

Hence, it will be prudent to wait for some strong follow-through buying, possibly beyond the key 1.4000 psychological mark before traders start positioning for any further near-term appreciating move.

Technical levels to watch

GBP/USD

Overview
Today last price	1.39
Today Daily Change	0.0009
Today Daily Change %	0.06
Today daily open	1.3891

Trends
Daily SMA20	1.3863
Daily SMA50	1.3857
Daily SMA100	1.3779
Daily SMA200	1.3445

Levels
Previous Daily High	1.3941
Previous Daily Low	1.3857
Previous Weekly High	1.3976
Previous Weekly Low	1.3803
Previous Monthly High	1.4009
Previous Monthly Low	1.3669
Daily Fibonacci 38.2%	1.3889
Daily Fibonacci 61.8%	1.3909
Daily Pivot Point S1	1.3852
Daily Pivot Point S2	1.3813
Daily Pivot Point S3	1.3768
Daily Pivot Point R1	1.3935
Daily Pivot Point R2	1.398
Daily Pivot Point R3	1.4019

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.