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Sterling holds $1.68
The pound edged higher yesterday when eyes were on the European Central Bank and has managed to retain its gains, after UK consumer inflation expectations came in at 2.6%. Though the gains were minimal, it bodes well for the pound that it is above the important $1.68 level ahead of non-farm payrolls and the announcement of unemployment levels at 1.30pm (London time). The consensus is for an increase of 215,000 and unemployment to rise to 6.4%, but we should keep in mind the recent ADP and jobless claims reports missed expectations.
If jobs data misses expectations we could see the pound head towards $1.6880, while a solid jobs figure could push the pound to $1.6720.