Pound Sterling outperforms its peers amid risk-on mood, US NFP in focus

المقالات الشائعة

The Pound Sterling (GBP) trades higher against its major currency peers, is up 0.43% around 1.3610 against the US Dollar (USD), during the European trading session on Friday.

The Pound Sterling gains across the board amid a risk-on market mood.
US President Trump confirms that the ceasefire with Iran is intact.
Investors await the US NFP data for fresh cues on the Fed’s monetary policy outlook.

The Pound Sterling (GBP) trades higher against its major currency peers, is up 0.43% around 1.3610 against the US Dollar (USD), during the European trading session on Friday. The British currency outperforms as demand for risk-sensitive assets remains upbeat amid hopes of a diplomatic solution between the United States (US) and Iran.

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.34%	-0.40%	-0.11%	-0.15%	-0.34%	-0.38%	-0.31%
EUR	0.34%		-0.08%	0.24%	0.18%	-0.01%	-0.00%	0.05%
GBP	0.40%	0.08%		0.32%	0.26%	0.07%	0.08%	0.12%
JPY	0.11%	-0.24%	-0.32%		-0.04%	-0.26%	-0.27%	-0.20%
CAD	0.15%	-0.18%	-0.26%	0.04%		-0.22%	-0.22%	-0.16%
AUD	0.34%	0.00%	-0.07%	0.26%	0.22%		0.00%	0.05%
NZD	0.38%	0.00%	-0.08%	0.27%	0.22%	-0.01%		0.05%
CHF	0.31%	-0.05%	-0.12%	0.20%	0.16%	-0.05%	-0.05%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

As of writing, S&P 500 futures are 0.55% higher to near 7,375, reflecting a strong demand for riskier assets ahead of the United States (US) Nonfarm Payrolls (NFP) data for April release at 12:30 GMT. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.3% lower to near 97.95.

The expectation that the month-long ceasefire between the US and Iran is intact remains stable after President Donald Trump confirmed, in an interview with ABC News, that strikes exchanged near the Strait of Hormuz were not meant to restart the war.

Going forward, investors will pay close attention to the US NFP data to get fresh cues on the Federal Reserve’s (Fed) monetary policy outlook. The Fed is expected to hold interest rates at their current levels by the year-end, according to the CME FedWatch tool.

The US NFP report is expected to show that the economy created 62K fresh jobs, significantly lower than 178K in March. The Unemployment Rate is seen as steady at 4.3%. Average Hourly Earnings, a key measure of wage growth, is estimated to have grown at a stronger pace of 3.8% Year-on-Year (YoY) against the previous reading of 3.5%.

Economic Indicator

Nonfarm Payrolls

The Nonfarm Payrolls release presents the number of new jobs created in the US during the previous month in all non-agricultural businesses; it is released by the US Bureau of Labor Statistics (BLS). The monthly changes in payrolls can be extremely volatile. The number is also subject to strong reviews, which can also trigger volatility in the Forex board. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish, although previous months' reviews and the Unemployment Rate are as relevant as the headline figure. The market's reaction, therefore, depends on how the market assesses all the data contained in the BLS report as a whole.

Why it matters to traders?

America’s monthly jobs report is considered the most important economic indicator for forex traders. Released on the first Friday following the reported month, the change in the number of positions is closely correlated with the overall performance of the economy and is monitored by policymakers. Full employment is one of the Federal Reserve’s mandates and it considers developments in the labor market when setting its policies, thus impacting currencies. Despite several leading indicators shaping estimates, Nonfarm Payrolls tend to surprise markets and trigger substantial volatility. Actual figures beating the consensus tend to be USD bullish.

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