GBP/USD extends post-NFP losses towards 1.3500 as Brexit talks, UK Q4 GDP eyed By anilpanchal7 GBPUSD Brexit GDP Currencies NFP
and the UK politics, as well as cautious sentiment ahead of Thursday’s Brexit talks between UK Foreign Secretary Liz Truss and European Commission vice-president Maros Sefcovic, not to forget Friday’s preliminary reading of the UK Q4 GDP.
Friday’s DXY rebound could well be linked to the positive surprise from the US Bureau of Labor Statistics , concerning January employment data. That said, the headline rose by 467K versus the median forecast for a 150K rise and 510K revised prior while the Unemployment Rate rose to 4.0% from 3.9% in December, compared to expectations for a no-change figure. It’s worth noting, however, that the U6 Underemployment Rate extended the south-run to 7.1% from 7.3% previous readouts.
At home, fishermen eked out pessimism over Brexit deadlock while UK Prime Minister Boris Johnson is said to have hired a "mastermind" Isaac Levido to save his job, per the UK Express. Elsewhere, the World Health Organization’s Europe region Director Dr. Hans Kluge said, per Sky, “for now, the number of deaths across the region is starting to plateau".
Following the US jobs report, the US 10-year Treasury yields rose to the highest levels in two years before recently easing to 1.90%. The equities, however, remain sluggish after surprising markets with a positive daily close on Friday.during the early week may allow GBP/USD traders to take a breather after a volatile week. However, escalating Brexit tension and a disappointment from UK GDP may recall the pair bears.GBP/USD remains below 21-DMA and the 61.
Given the steady RSI and the pair’s inability to stay beyond the key resistances, the latest declines are likely to extend towards the nearby support, namely the 100-DMA level surrounding 1.3510 and the 1.3500 threshold.