FXstreet.com (Barcelona) - The Sterling has reacted down against the Greenback after the worst than expected September US Non-Farm payrolls. Pair has fallen quickly to post 1.5810 as fresh intra-day low. After that, GBP/USD has bounced above 1.5850 level again.
Currently the pair is trading around 1.5850/60, 0.50% below today's opening price action.
U.S. non Farm Payrolls have declined by 263,000 in September, beating the Expert's expectations of a 175,000 drop, Unemployment rate has edged up to 9.8% in September from 9.7% in Augurs. Dollar and Yen soar on risk aversion.
Nick Nasad, currency market analyst with CMS Forex, comments in the FXstreet.com NFP live coverage: The Pound broke through a short term upward sloping line of support (connecting this week's lows). The most recent move down follows the pair's retracement of 50% of its recent swing from 1.6460 to 1.5770. here is support now from the beginning of the summer, but we have been in a downtrend most of September, and I still see that as the dominant trend.
Nasad concludes: Even the BOE Governor has said that a weak Pound is beneficial to the UK economy, so we are going to flirt more with the support level that we had early on in the summer