GBP/USD poised for additional weakness on positive NFP data

The GBP/USD pair retreated from around 1.2290s close to 100 pips after the release of better-than-expected labour market report in the United States, suggesting that further central bank tightening will be required.

However, after the US employment report, the GBP/USD is trading around 1.2210s, after traveling towards its daily low of 1.2133, on the market’s reaction to US headline data.

US shares are still in the negative territory after the November US Nonfarm Payrolls rose by 263,000 following an upward revision of 284,000 jobs added in October, the Department of Labour data showed. Fed policymakers agreed that moderating the pace of rate hikes is appropriate, it would be interesting to see Fed officials’ postures, led by the Chicago Fed President Charles Evans, crossing newswires around 15:00 GMT.

The US Dollar Index, a gauge of the American currency’s value against a basket of six currencies, after hitting six-month lows around 104.377, stages a mild recovery, reclaimed the 105.000 figure up 0.32%.