Pound resumes drop vs. dollar after U.S. jobs report

The GBPUSD resumed its drop for a fifth straight session on Friday after a report showing the U.S. labor market is on the right track.  

U.S. nonfarm payrolls signaled 295,000 jobs were created last month from 257,000 in January, surpassing forecasts of 240,000 jobs.

The jobless rate dropped to 5.5 percent, better than economists’ forecasts of 5.6 percent, compared to 5.7 percent in January, the NFP report showed.

There are mounting speculations, meanwhile, that Fed would undertake its first interest rate hike earlier than expected.

On the other hand, the BOE decided this week to keep the interest rate unchanged, raising expectations there will be no rate hike before next year.

As long as the economic data are getting the better, the Fed may reconsider the timing of raising interest rates by making it earlier. 

As of 08:05 p.m. GMT, the GBPUSD traded around 1.5062, where the session’s low was hit at 1.5054 and the high was touched at 1.5254.

The GBPUSD resumed its fall after the breach of Daily SMA 50, yet it is currently facing support areas, which may help to pound to recover some of its losses.