Breaking News

Sterling To Give Up Amid Upbeat U.S. Nonfarm Payrolls

By InstaForex GroupCurrenciesJul 02, 2021 05:11AM ET

www.investing.com/analysis/sterling-to-give-up-amid-upbeat-us-nonfarm-payrolls-200589470

By InstaForex Group | Jul 02, 2021 05:11AM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

GBP/USD

-0.53%

Add to/Remove from Watchlist

+0.41%

Add to/Remove from Watchlist

Today all eyes are on the report by the US Department of Labor that could weaken the pound sterling. First, the US unemployment rate is expected to edge down to 5.7% from 5.8%. Being viewed as the main criterion of current conditions in the labor market, the jobless rate indicates improvement. Besides, the labor force participation rate could have risen to 61.7% from 61.6%.

That means an increase in the economically active workforce. In fact, the unemployment rate actually declined to a larger degree in June. Second, the US economy could have added 570K jobs excluding farm employees. In other words, the jobless rate is set to go down at a faster pace. For comparison, the nonfarm payrolls for May logged 492K new jobs. Third, average hourly earnings could have grown to 2.1% from 2.0%. It turns out that the number of working Americans increased and their wages also rose.

As a result, the overall income expanded notably. In turn, experts reckon this will invigorate consumer activity which is seen as a driving force of the US economy. In view of all these factors, the US economy is obviously keeping healthy. So, a recovery is going on at full steam. This is certainly bullish for the US dollar unless the employment data is worse-than-expected.

US Nonfarm Payrolls

Yesterday GBP/USD crossed an important correctional level of 1.3785. So, the sterling fell to 1.3751 against the US dollar.

The market dynamic is getting more turbulent as the speculative interest is evident. The average volatility per 24 hours from June 28 to July 1 is measured at 72 pips.

Speaking about the ongoing price move, the pair is trading firmly below 1.3785 that could eventually assure traders to step up short positions.

In case the bears continue pushing the price down, GBP/USD could make the next downward move to 1.3700-1.3675.

This scenario suggests an extended downward correction from the top of the medium-term trend. Analysts do not rule out a reversal of the overall uptrend.
In terms of complex indicator analysis, we see that all technical tools are generating a sell signal on the back of the vigorous downward move.

InstaForex Group

Add a Comment

Strong Nonfarm Payrolls Report Will Force the Fed to Hike By Matthew Weller - Jun 02, 2023 2

The Fed has repeatedly indicated that it wants to pause rate hikes, but strong US economic data may force its hand. The NFP report is expected to show 193K net new jobs and average...

EUR/USD Bears Want Another Test of Moving Average By Al Brooks - Jun 02, 2023 2

The EUR/USD got a bull breakout yesterday. However, as strong as the bull breakout bar is, it is probably a minor reversal. The channel down from the May high is tight, which...

Week Ahead: RBA and BOC to Hold Rates but Might Be Tempted to Hike,... By Trading Point - Jun 02, 2023

Policy decisions from the RBA and the Bank of Canada will be taking centre stage next week amid an otherwise light agenda. In the United States, the ISM services PMI will be the...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.
Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

More Categories

1D1W1M6M1Y5YMax

US 30	33,652.5	+590.9	+1.79%
US 500	4,274.9	+53.9	+1.28%
Dow Jones	33,650.79	+589.22	+1.78%
S&P 500	4,275.40	+54.38	+1.29%
Nasdaq	13,217.54	+116.56	+0.89%
S&P 500 VIX	14.74	-0.91	-5.81%
Dollar Index	103.925	+0.423	+0.41%

Crude Oil WTI	71.64	+1.54	+2.20%
Brent Oil	75.95	+1.67	+2.25%
Natural Gas	2.200	+0.042	+1.95%
Gold	1,973.95	-21.55	-1.08%
Silver	23.777	-0.210	-0.88%
Copper	3.7168	+0.0058	+0.16%
US Soybeans	1,351.00	+22.00	+1.66%

U.S. 10Y	3.693	+0.092	+2.58%
U.S. 30Y	3.883	+0.059	+1.59%
U.S. 5Y	3.832	+0.131	+3.53%
U.S. 3M	5.427	+0.042	+0.78%
US 10Y T-Note	114.00	-0.73	-0.64%
Euro Bund	135.56	-0.77	-0.56%
10-2 Yield Spread	-76.44	+0.00	+0.00%

Apple	180.83	+0.74	+0.41%
Alphabet A	124.66	+0.94	+0.76%
Tesla	215.28	+7.76	+3.74%
Amazon.com	124.39	+1.62	+1.32%
Netflix	402.69	-0.44	-0.11%
Meta Platforms	273.05	+0.44	+0.16%
Bank of America	28.85	+1.07	+3.85%

	Interest Rates	Next Meeting
FED	5.25%	Jun 14, 2023
ECB	3.75%	Jun 15, 2023
BOE	4.50%	Jun 22, 2023
SNB	1.50%	Jun 22, 2023
RBA	3.85%	Jun 06, 2023
BOC	4.50%	Jun 07, 2023
RBNZ	5.50%	Jul 12, 2023
BOJ	-0.10%	Jun 16, 2023
CBR	7.50%	Jun 09, 2023
RBI	6.50%	Jun 08, 2023
PBOC	3.65%
BCB	13.75%	Jun 21, 2023

Sterling To Give Up Amid Upbeat U.S. Nonfarm Payrolls

US Nonfarm Payrolls

Related Articles