GBP/USD Fundamental Forecast – May 9, 2016

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Published: May 6, 2016, 11:59 UTC

The GBP/USD added 18 points as the greenback tumbled ahead of US jobs data while UK voters waited for the outcome of elections and the naming of a new

GBP/USD Fundamental Forecast – May 9, 2016

The GBP/USD added 18 points as the greenback tumbled ahead of US jobs data while UK voters waited for the outcome of elections and the naming of a new Mayor of London. The pound is trading at 1.4504. The U.S. dollar is heading towards the Friday morning release of the U.S. nonfarm payrolls (NFP) report with a strong rally that was not slowed down by the lower than expected ADP private payrolls report and higher unemployment claims this week. The ADP non-farm employment change showed a 156,000 job gain, short by 50,000 of the forecast. Weekly unemployment claims rose to 274,000 coming in higher than the anticipated 261,000. While both data points do not spell disaster and in fact still show a strong employment trend the market anxiety on the NFP report has regained some of the attention that made it the biggest indicator in forex.

The Pound’s next notable movements may stem from the most unpredictable source of all – the ongoing UK local elections. Announcements of results are expected to be made over the course of tomorrow, Saturday and Sunday.

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