- The Pound Sterling climbed over the Greenback after markets surged in the NFP aftermath.
- US jobs additions easily cleared expectations, but revisions loom ahead.
- US data dominates Friday, UK looks ahead to GDP and output figures next Friday.
The GBP/USD climbed into a new high for the year at 1.2771 after markets broadly went risk-on after the US Nonfarm Payroll (NFP) data release surged above median forecasts, adding 216K new jobs in December. The NFP print handily trounced market expectations of 170K. Still, November saw a steep revision from 199K to 173K, with even further revisions to October’s already-revised 150K, bringing it down to just 105K.
Despite revisions continuing to plague key datasets, markets surged on the NFP forecast-beater, pushing the US Dollar broadly lower and sending the Pound Sterling to a new 2024 high.
US Average Hourly Earnings for the year through December also beat expectations, climbing from 4.0% to 4.1% versus the forecast tick down to 3.9%, and the US Unemployment Rate also beat the street, holding steady at 3.7% against the forecast increase to 3.8%.
See More: US Nonfarm Payrolls rise by 216,000 in December vs. 170,000 expected
Earlier Friday, UK Halifax Housing Prices rebounded for the annualized fourth quarter, climbing 1.7% after the previous quarter’s -0.8% backslide (revised up slightly from -1.0%). UK data was strictly low-impact and barely moved the needle as markets were bracing for NFP at the time.
Coming up next week will be BRC Like-For-Like Retail Sales on Tuesday, and then a clear data docket from the UK until next Friday’s Manufacturing & Industrial Production, as well as UK GDP figures.
US data will again feature heavily next week, with US Consumer Price Index (CPI) figures for December printing on Thursday, as well as Producer Price Index (PPI) and the Michigan Consumer Sentiment Index for January both printing on Friday.
Pound Sterling price this week
The table below shows the percentage change of Pound Sterling (GBP) against listed major currencies this week. Pound Sterling was the strongest against the Japanese Yen.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.94% | 0.04% | 0.66% | 1.44% | 2.51% | 1.12% | 0.94% | |
| EUR | -0.80% | -0.74% | -0.14% | 0.65% | 1.57% | 0.34% | 0.09% | |
| GBP | -0.06% | 0.74% | 0.63% | 1.38% | 2.54% | 1.08% | 0.82% | |
| CAD | -0.66% | 0.10% | -0.45% | 0.76% | 1.85% | 0.45% | 0.25% | |
| AUD | -1.46% | -0.66% | -1.42% | -0.80% | 0.90% | -0.34% | -0.57% | |
| JPY | -2.55% | -1.57% | -2.45% | -1.67% | -0.90% | -1.24% | -1.67% | |
| NZD | -1.14% | -0.34% | -1.09% | -0.47% | 0.32% | 1.23% | -0.24% | |
| CHF | -0.88% | -0.09% | -0.83% | -0.19% | 0.58% | 1.62% | 0.27% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
GBP/USD Technical Outlook
It’s been a down-then-up week for the Pound Sterling, kicking off 2024 with broad gains against the majority of the GBP’s major currency peers. As markets wind down towards the Friday closing bell, the Poun Sterling finds itself up over two and a half percent against the Yen this week, with a 1.4% gain against the Aussie and 1.1% against the Kiwi as the Antipodeans slump.
The only contender taking wind out of the GBP’s sails was the US Dollar itself, keeping mostly flat on the week and strapping the GBP/USD to a tight range around the 1.2700 handle.
GBP/USD bids remain constrained within easy reach of the 200-day Simple Moving Average (SMA), and a rough near-term consolidation range is baking into the daily candlesticks.
GBP/USD Hourly Chart
GBP/USD Daily Chart
GBP/USD Technical Levels
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops back below 1.0550 as markets turn cautious
EUR/USD returns to the red below 1.0550 in the European session on Tuesday. The pair eases due to fading market's optimism over likely Chinese stimulus, allowing the US Dollar resume its upside. Increased dovish bets surrounding the ECB also add to the weight on the pair.
GBP/USD eases below 1.2750 amid renewed US Dollar buying
GBP/USD loses traction and falls below 1.2750 in European trading on Tuesday. The risk-sensitive pair bears the brunt of deteriorating risk sentiment, which helps the US Dollar find haven demand. Traders turn cautious heading toward Wednesday's US inflation test.
Gold price surrenders major part of intraday gains; downside seems limited
Gold price surrenders a major part of its intraday gains back closer to a two-week high touched the previous day and trades with a mild positive bias, just above the $2,660 level during the early European session on Tuesday.
Altcoins LTC, CRV and ONDO recover after retesting key support levels
Litecoin, Curve DAO and Ondo prices recover on Tuesday after retesting and bouncing off key support levels following Monday’s double-digit correction. The technical outlook suggests a further recovery ahead, with the Moving Average Convergence Divergence momentum indicator supporting the rebound.
How the US-China trade dispute is redefining global trade
Since Donald Trump took office in 2017, trade flows and market shares have changed substantially. We think that shift is set to continue under looming tariffs and a new protectionist environment.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.