- The US Nonfarm Payrolls data revealed that the economy gained 227,000 jobs in November.
- The Michigan Consumer Sentiment Index increased to 74 in December.
- The GBP/USD pair has shifted downward, nearing the 1.2700 level.
The US Dollar (USD) weakened following the release of the United States Nonfarm Payrolls (NFP) report, which lifted GBP/USD to a fresh one-month high of 1.2810. Data from the US Bureau of Labor Statistics (BLS) showed that the economy added 227,000 jobs in November, exceeding the forecast of 200,000.
Meanwhile, the Unemployment Rate rose slightly to 4.2% from 4.1%, aligning with expectations. The Labor Force Participation Rate dipped to 62.5%, while annual wage growth, measured by Average Hourly Earnings, remained steady at 4%, surpassing the anticipated 3.9%.
Despite initial losses, the US Dollar regained strength after the release of the preliminary December Consumer Sentiment Index, which increased to 74 from 71.8, surpassing market expectations of 73.
Expectations for a Federal Reserve (Fed) rate cut rose following the data, boosting both the Greenback and equities.
GBP/USD Technical Analysis
The British Pound has turned lower against the USD, with the pair trading near 1.2700. Sellers were drawn to the 200-day Simple Moving Average (SMA), currently around 1.2820. Meanwhile, the 20-day SMA continues its bearish trajectory just below the current level at 1.2690, which acts as immediate support ahead of the 1.2650 zone.
