020 7898 0500Due to a greenback sell-off the GBP/USD pair recovered its losses and rose to a fresh high of 1.2904, yet this did not last for very long. The pair finished below 1.2900 on Friday before close of business. Referring to Fibonacci levels (a technical analysis of currency movements), 1.2820 is a key level investors will be on the lookout for; if the pair starts trading below this level it could create bullish US dollar strength.
The US dollar index fell to its lowest level (below 97) following a poor non-farm payroll figure at 138,000 against a forecast figure of 181,000.
In early trading this morning, the dollar recovered some of last week’s losses. Today we have non-manufacturing data coming out from the US. We are also in the build-up phase to next week’s Federal Reserve meeting on interest rates. The markets are giving a 90% chance for a 0.25% increase in US interest rates although the rhetoric is changing given the lacklustre performance of the US economy.
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