Sterling still ahead of US jobs report

The pound is broadly unchanged versus the US dollar as traders await non-farm payrolls at 1.30pm (London time).

The pound is trading at $1.6577, down 0.1%, as traders wait for the most important economic update of the month for which the consensus is for an increase of 200,000 new jobs. It is not unusual for volatility to be low in the build up to the announcement but depending on how the report goes, that could all change.

During the week two members of the Federal Reserve suggested that interest rates could increase next year. The US is still operating a stimulus package and there is already talk of interest rate hikes. The US is far from standing on its own two feet, but even discussing the possibility of raising rates has pushed the US dollar higher this week.

The pound has declined against the US dollar in the past few trading sessions, and the $1.66 mark has been an important level since the start of the year in terms of support and resistance. If the jobs report is better than expected we could see the pound head towards the 100-day moving average of $1.6520. If it fails to meet expectations, the pound may pull back its recent losses and move towards the $1.6650 mark. As Chris Beauchamp highlighted, the $1.6650 region is the first resistance level of March. 

Spot FX GBP/USD chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.