GBP/USD picks up following a post-NFP slump, returns above 1.2600
- The Pound has trimmed retraced post-NFP lows and is practically flat on the daily chart.
- Nonfarm Payrolls data shows that the US economy remains creating employment at a strong pace.
- A frail economic outlook and softer inflationary pressures are weighing on the Pound.
The Sterling is regaining lost ground on Friday’s US session following a significant reversal, with a strong US employment report sending the Dollar soaring. The pair, however, remains practically flat in the weekly chat after having whipsawed over the last few days.
US Nonfarm Payrolls increased by 303K in March beating expectations of a 200K increase to close a stellar quarter for employment. Wage inflation has continued growing, although the moderation observed in the yearly rate, which has eased to 4.1% from 4.3% in the previous month has eased concerns about a hawkish steer by the Federal Reserve.
In the UK the weak services sector activity data seen this week adds to the evidence of an uncertain economic outlook. The weak GDP and the slowing price pressures boosted speculation that the BoE might anticipate the first rate cuts, which is weighing on the Pound.
The technical picture remains bearish, with resistance at 1.2675 holding buyers ahead of 1.2755. support levels are 1.2575 and 1.2535.