Non Farm Payrolls Cause the Pound to Trade Higher on Friday against the U.S. Dollar. The week closed out with the pound at 1.6111 up by 0.52%. Friday morning began with the GBP lower because of a poor manufacturing report. However, the pound got a break at 1.6045 and hit its target later in the day. The non-farm payrolls were higher than anticipated for the U.S. from 194.00K to 216.00K. It was predicted by analysts that the payrolls would only rise to 188.00K.
Monday’s low, the pair was likely to find support at 1.5938, and resistance at 1.6151, for Friday.
Stronger Growth Than Expected Helps US-Dollar against Euro and Swiss Franc
Non-Farm Payrolls Provide a Solid Base for the Dollar to trade higher against the Euro. The Euro traded at 1.4239, up 0.56% against the U.S. Dollar as of Friday. Throughout the week, the Euro held its position above 1.4000 but dipped after the U.S. non-farm payroll report. The report was above expectations dropping from 8.9% to 8.8% from last month. Also, the manufacturing report showed the market strengthening greater than it has in the last seven years. In addition, U.S. employment is predicted to rise another 190K in March. The continuing progress in the labor market could generate an increase for the U.S. dollar as it continues to recover.
Monday’s low, the pair was likely to find support at 1.4245, and resistance at 1.4036, for Friday.
U.S. Dollar Traded Higher Against the Swiss Franc on Friday. The pair traded at 0.9208, up 0.20% hitting a peak at 0.9276. For the long-term, it is predicted that the pair will see an upward trend in the next few days and resistance around the 0.92-0.93 area. Because of this, more buying is a possibility
Thursday’s low, the pair was likely to find support at 0.9127 with the key resistance at 0.9275, for Friday.
Nuclear Crisis Still Dictates US/Yen Trading
The USD/YEN Pair Continue to Hold Their Own trading at 83.73, as of Friday. This improved number rests on a healthier U.S. economy despite the Fukushima nuclear crisis. Overall, the Japanese Yen has weakened by the earthquake and Tsunami and has traded lower against the dollar since March 16th. In the following week, the BOJ will hold a meeting to address interest rates and further recovery efforts. However, it is not expected that Japan will specifically address any long-term monetary obligations. Since the Japanese has given 33 trillion for recovery efforts which is expected to decrease the YEN in coming weeks. In general, it is speculated that the BOJ will make its best effort to guarantee cash remains to be there for businesses and production continues.
Despite the pair’s improved numbers, the Yen is dropping overall. This is largely due to weekly losses and investors risk taking worries. The pair peaked at 84.71, but fell back below the 84 mark to 84.20/25 by Friday.