GBP/USD – Pound Pauses After Impressive Rally, U.S. Job Data Looms

The British pound has taken a breather on Friday, but is up almost 2 percent on the week. The pound has gained ground as the Conservatives continue to hold a lead in election polls. The Aussie and NZ dollar have also posted sharp gains against the U.S dollar this week.
Kenny Fisher
GBP/USD daily chart, November 11, 2019

GBP/USD is steady in Friday trade. Currently, the pair is trading at 1.3149, down 0.07% on the day. There are no major British indicators on the schedule.

Election Polls Fuel Pound Rally

The pound has recorded daily gains every day this week, and GBP/USD is up almost 2 percent on the week. This surge has come despite soft British economic numbers this week. PMI releases for November indicated contraction in the manufacturing, services and construction sectors, as the economy continues to struggle. Investors shrugged off the disappointing news, preferring to focus on the British election next week. Recent election polls give the Conservatives a lead of 9-11 points over Labour, which is clearly music  to the market’s ears. Investors prefer the pro-business stance of the Conservatives, compared to the social-leaning stance of  Labour, such as plans to nationalize energy and water utilities.

Ahead – U.S. NFPs and Wage Growth

The U.S. releases key employment data later on Friday, which could shake up GBP/USD. Analysts are expecting strong numbers, which could boost the U.S. dollar. Nonfarm payrolls are projected to increase sharply to 181 thousand, compared to 128 thousand in the previous release. As well, wage growth is expected to rise from 0.2% to 0.3%. The UoM Consumer Sentiment index is also expected to climb to 97.0, up from 95.7 pts.

Technical Analysis

GBP/USD has moved some distance above 1.3100 and has moved close to resistance at 1.3200. This major line has held since late March, so it would be a significant development for the pair if this line is breached.

GBP/USD 1-Day Chart

Pacific Currencies – Summary


USD/CNY started the week with gains and climbed above climbed the 7.0700 line, its highest level since October 23. However, the yuan has managed to recover these losses, as the pair has retracted. The pair is currently at 7.0331, down 0.16% on the day.


AUD/USD has reversed directions on Friday, and is trading at 0.6843, down 0.11% on the day. The pair has gained 1.2% this week, and is on track for its highest 1-week gain since late October.


NZD/USD is currently trading at 0.6565, up 0.29% on the day. It has been a banner week for the pair, which is up 2.2% on the week. The New Zealand dollar is at its highest level since early August.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.