4 Mar 2016
GBP/USD well bid and taking on 1.42 handle
GBP/USD has been choppy on the release of the mixed nonfarm payrolls result, dropping down to the 50 sma on the 1 hr sticks on the headline and then punished back on the detail.
As ever, while a good headline number supports demand for the greenback, it is finer details that tell another story and in this case, the numbers showed a big fall in average weekly earnings from 878.15 to just 872.04. -0.7% is the biggest monthly drop in the entire series history and wage growth is non-existent in an economy that is supposedly recovering.
March hike off the table - ING
"A March rate hike remains off the table in our view, following this release. And the mixed nature of this report makes it unclear what the Federal Reserve should in fact be doing longer term," explained Rob Carnell, Chief International Economist at ING.
GBP/USD levels
GBP/USD is testing the upside at the 1.42 handle and is continuing to recover from the Feb 1.4666 downside through the 4hr 100 sma. Next stop is the 200 sma on the same time frame at 1.4267, leaving behind recent lows of 1.3834.
As ever, while a good headline number supports demand for the greenback, it is finer details that tell another story and in this case, the numbers showed a big fall in average weekly earnings from 878.15 to just 872.04. -0.7% is the biggest monthly drop in the entire series history and wage growth is non-existent in an economy that is supposedly recovering.
March hike off the table - ING
"A March rate hike remains off the table in our view, following this release. And the mixed nature of this report makes it unclear what the Federal Reserve should in fact be doing longer term," explained Rob Carnell, Chief International Economist at ING.
GBP/USD levels
GBP/USD is testing the upside at the 1.42 handle and is continuing to recover from the Feb 1.4666 downside through the 4hr 100 sma. Next stop is the 200 sma on the same time frame at 1.4267, leaving behind recent lows of 1.3834.