Wall Street opened higher and the dollar spiked after the NFP showed the labour market rebounded in March by more than expected.
- Job created: 196k vs 180k exp.
- Wage growth: 3.2% vs. 3.4% exp.
- Unemployment 3.8% as exp.
Pound Lower As May’s Brexit extension in doubt
The pound headed southwards versus the stronger dollar.
Theresa May requesting an extension to Article 50 to 30th June, hasn’t gone down well with pound traders and isn’t likely to go down well with Brussels either.
With EU President Donald Tusk favouring an extension of a year and France playing hardball, Theresa May’s request is likely to be rebuffed. This will leave Theresa May with little choice but to hold European elections next month, a move many Brexiteers could find too much to swallow.
Looking at the bigger picture GBP/USD continues to trade within a familiar range of $1.30 - $1.32. It would be worth waiting for a meaningful break through this band before. With the pound currently at $1.3012 this breakout could be sooner rather than later. A convincing move through the key psychological support at $1.30 could see the pound extend losses towards $1.2980. A break below this support could open the door towards $1.29. On the upside resistance can be seen at $1.3150 before a strong barrier at $1.32.
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