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2 Apr 2015
Impact of NFP on GBP/USD, scenario analysis – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, a weaker than expected print of nonfarm payrolls might lead to a short-term correction in the dollar, thereby boosting GBP/USD to 1.4950, while a stronger result might drown cable towards 1.4633.
Key Quotes
“The market expects non-farm payrolls report to show the US economy added 244K jobs in March, compared to 295K in February.”
“However, if the NFP prints below estimates, we are likely to see a short correction in the US dollar. It may not significantly alter the rate hike expectations, since we have had three months of stellar jobs report, still, it could trigger a short correction in the USD.”
“In case of GBP/USD it could mean a rally to 1.4950-1.4970 levels. Further gains are unlikely due to the UK election uncertainty.”
“On the other hand, a better-than-expected jobs report could bring back June rate hike talk and push the GBP/USD pair well below the latest cyclical low of 1.4633.”
Key Quotes
“The market expects non-farm payrolls report to show the US economy added 244K jobs in March, compared to 295K in February.”
“However, if the NFP prints below estimates, we are likely to see a short correction in the US dollar. It may not significantly alter the rate hike expectations, since we have had three months of stellar jobs report, still, it could trigger a short correction in the USD.”
“In case of GBP/USD it could mean a rally to 1.4950-1.4970 levels. Further gains are unlikely due to the UK election uncertainty.”
“On the other hand, a better-than-expected jobs report could bring back June rate hike talk and push the GBP/USD pair well below the latest cyclical low of 1.4633.”