During Friday’s American session, the greenback maintains its daily losses.
The dollar is corrected as a result of US employment data.
The GBP/USD exchange rate rose on Friday, but fell for the week.
After a quick recovery from 1.3730, the lowest level since mid-April, the GBP/USD is hovering above 1.3800. Following the announcement of the US jobs report, the pair bottomed and then surged to the upside as the greenback reversed, sliding across the board.
Non-farm payrolls increased by 850K, above forecasts. It was the best month for employment creation since August of the previous year. The dollar first climbed, but then reversed course. The decrease was prompted by profit-taking and, most likely, a “buy the rumor, sell the fact” mentality. The DXY fell from monthly highs to below 92.50.
The minutes of the Federal Open Market Committee’s most recent meeting will be the focus of attention in the United States next week. The dollar’s short-term momentum still shows some strength, which will be tested in the next sessions. On Monday, Wall Street will be closed (Independence day in the US).
The pound has fared better than most of its G10 rivals in the face of the dollar’s strengthening trend, according to ING analysts, “which also shows how the market continues to perceive the recent steep surge of Delta variant cases in the UK as unlikely to derail the country’s economic recovery.” The UK’s GDP growth will be a key piece of data next week, according to ING analysts, but the attention will most likely be on another speech by Bank of England Governor Andrew Bailey./n
