GBP/USD keeps the red below 1.2000 mark amid modest USD uptick post.

GBP/USD edged lower during the early North American session in reaction to the upbeat US NFP report.

The US economy added 372K new jobs in June (268K expected) and the jobless rate held steady at 3.6%.The data reaffirmed bets for aggressive Fed rate hikes and continued lending support to the greenback.

The GBP/USD pair struggled to capitalize on its intraday bounce from the 1.1920 region and attracted fresh selling in reaction to mostly upbeat US employment details. The pair was last seen trading around the 1.1985-1.1980 region, down nearly 0.35% during the early North American session.

The intraday US dollar pullback from a two-decade high was quickly bought into after the headline NFP showed that the US economy added 372K jobs in June. This was slightly below the previous month’s downwardly revised reading of 384K, though it was well above the 268K anticipated. Adding to this, the Unemployment Rate held steady at 3.6%, as expected, and cemented expectations for a more aggressive policy tightening by the Fed.

The prevalent cautious mood around the equity markets offered some support to the safe-haven greenback. Weaker US Treasury bond yields held back the USD bulls from placing fresh bets and offered some support to the GBP/USD pair, at least for the time being. The near-term bias, however, remains tilted in favour of bearish traders amid Brexit woes and expectations for a less hawkish Bank of England.

EUR/USD extends recovery beyond 1.0170

EUR/USD has regained its traction and climbed into positive territory above 1.0170 following the NFP-inspired drop in the early American session. With Wall Street’s main indexes posting heavy losses after the opening bell, however, the pair is struggling to push higher.


GBP/USD tries to stabilize above 1.2000

GBP/USD has managed to stage a modest rebound and advanced beyond 1.2000. Although the greenback is having a tough time preserving its strength after NFP, the risk-averse market environment is not allowing the British pound to find demand.


Gold turns south after spiking above $1,750 on US data

Gold jumped above $1,750 with the initial reaction to the Nonfarm Payrolls report in the early American session but ended up reversing its direction. With the benchmark 10-year US Treasury bond yield rising nearly 3% on the day, XAU/USD trades in negative territory below $1,740.

Leave a Comment

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s