Sterling has found a small level of support against the US dollar this morning, in a move which could be short lived ahead of tomorrow’s key US jobs data. We have seen sterling now push to a high of 1.3325 up from yesterdays low of 1.3220.
As I alluded to in my post from earlier in the week I thought we might see a slight correction for the pound as the dollar has been on a significant surge in recent weeks against both the pound and euro. We have also seen a sizeable rebound for EUR/USD having reached a low of 1.1525 yesterday trading levels have peaked back at 1.17 this morning, a 1.5% swing. This dollar sell off has resulted in dollar weakness across most majors, possibly a short term trend ahead of key non-farm payroll figures tomorrow and an opportunity for anyone buying US dollars?
What can we expect for GBP/USD?
Non-farm is a key barometer for the US economy and shows the number of new jobs created outside of the agricultural sector. Figures can often be way off the predicted levels and therefore can create some significant volatility for dollar exchange rates. Levels are expected to show an increase from the previous month with a figure of 188k forecast and should predictions be correct or greater then I would look for the dollar to gain back its momentum tomorrow afternoon, the release is scheduled for 13:30.
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