GBPUSD Fundamental Outlook


Pound Sterling returned to positive territory on Thursday as shown in the 5 January GBPUSD Fundamental Outlook following a sharp correction from the previous session. Learn more.

5 January, OctaFX– At 8:30 GMT, the Department of Labor will issue its long-awaited December nonfarm payrolls report. The monthly data set is expected to show the creation of 190,000 nonfarm jobs last month, following a gain of 228,000 in November. The jobless rate is expected to hold steady at 4.1%, with average hourly earnings accelerating 0.3% month-on-month.

On Thursday, payrolls processor ADP Inc. said private-sector employment surged by 250,000 in December, with services employment driving the bulk of the gains. The figure was much higher than the 190,000 predicted by economists and may have raised the stakes for Friday’s official data release.

However, solid payrolls data failed to lift the US dollar, which returned to multi-month lows against a basket of world currencies. The US dollar index (DXY) closed at 91.87 on Thursday and was little changed at the start of Asian trade.

In addition to the non-farm payrolls report, investors can expect headline factory orders and ISM non-manufacturing PMI to be released later in the North American session.

5 January GBPUSD Fundamental Outlook

Pound sterling returned to positive territory on Thursday following a sharp correction the previous session. Cable was last seen trading at 1.3565, having gained 0.1%. The pair now faces immediate resistance at the weekly high of 1.3612.

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