GBP/USD Daily Fundamental Forecast – March 12, 2018
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The pound continue to trade in a strong manner despite some steady data from the US on Friday. These pieces of data that were released on Friday helped the dollar to become stronger and the stock markets to climb higher but the pound bulls were able to hold their ground and this has been helping the pound to trade above the 1.38 region as of this writing.
GBPUSD Stays Strong
We believe that the 1.38 region is likely to act as a strong support for the short term and as long as the pair is above this region, the bulls would continue to remain in control. The GBPUSD pair has been able to show a lot of resilience despite the strength in the incoming data from the US. On Friday, we had the NFP data come in which showed that the number of jobs added to the economy was much higher than what was expected. But the unemployment rate increased and the average wage earnings also dropped showing that only low quality jobs were added to the economy.
It was a kind of mixed data for the dollar but that was enough to keep alive the hopes for 4 rate hikes during the course of the year from the Fed. But this choppy kind of data from the US had limited impact on the strength of the pair and that is why the pair continues to trade above the 1.38 region. We believe that the pair would continue to trade in a strong manner for the short term.
Looking ahead to the rest of the day, we do not have any major economic news or data from the US or the UK for the day and this is the first day of the week and hence we are likely to see some slow action in the markets. It is likely that the dollar strength would continue to rule the roost in the markets for today but we dont see any danger to the pound bulls as yet.
This article was originally posted on FX Empire