Pound hit by profit-taking

The pound is off versus the US dollar as traders lock in profits from yesterday’s rally.

The GBP/USD pair is trading at $1.6872, down 0.1%, as traders take their profits off the table after the pound breached the $1.69 mark yesterday, a new multi-year high. The UK revealed a dip in the construction purchasing managers index for April, which added to the selloff in the pound.

Traders are now focused on the US non-farm payroll and unemployment reports which are expected at 1.30pm (London time). The market consensus is for an increase of 215,000 new jobs on the payroll and an unemployment level of 6.6%.

As Brenda Kelly noted, the expectation for today’s jobs report is high even though growth in the first quarter of 2014 has been low. Traders could be expecting too much from this announcement. Should the US jobs data fail to impress we could retake the $1.69 level. Although, if the figures are strong we could head below the $1.68 level.

Brenda Kelly is hosting a non-farm payroll webinar today at 12.45pm register on our website. 


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.