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 here


IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.