FX.co ★ GBP/USD

GBPUSD H-1 Time Frame Update The U.S. Dollar Index rises as traders respond to the better-than-expected Nonfarm Payroll report. According to the data, the US economy added 130,000 jobs, exceeding analysts expectations of 70,000. The prior report has been changed from 50,000 to 48,000. The unemployment rate fell from 4.4% in December to 4.3% in January, below the analyst prediction of 4.4%. In January, average hourly wages climbed by 0.4% month on month, compared to an analyst expectation of 0.3%. According to the statistics, the labor market remained in good health despite concerns about the slowing of the US economy. Treasury yields rose as bond traders decreased their expectations on a dovish Fed. The yield on 2-year Treasuries went back to around 3.50%, while the yield on 10-year Treasuries remained above 4.15%. The upbeat news, combined with rising Treasury yields, gave significant support for the American dollar. Currently, the U.S. Dollar Index is attempting to break above the nearest resistance at 97.10-97.05. If this attempt is successful, the US Dollar Index will advance towards the next resistance level, which is located in the area of 98.00-98.15. The GBP/USD fell from session highs on the release of the Non Farm Payrolls report. From a macro perspective, traders shrugged off concerns about the UK political crisis in favor of the Feds policy outlook. GBP/USD recently attempted to settle above the resistance at 1.3710 - 1.3725 but lost impetus and dropped back. If the GBP/USD falls below the 50 MA at 1.3651, it will retest the support level of 1.3570-1.3585.