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.