British pound on 3.5-month lows against US dollar on employment data

British pound, alongside the euro, crumbled to 3.5-month lows against the US dollar on Friday, as the greenback was given enormous support, following the release of positive employment data from the United States.

GBP/USD cross took a dive to a session low and lowest point since March 12th at 1.4858 at 12:31 GMT, after which consolidation followed at 1.4898. The pair erased 1.17%. Support was expected at March 12th low, 1.4832, while resistance was likely to be met at current session high, 1.5081.

Demand for the greenback was bolstered after the Bureau of Labor Statistics in the United States reported today, that US economy managed to add 195 000 new job positions in June, significantly above the expected number of 165 000, while in May another 195 000 jobs were added. Additionally, Unemployment Rate in the United States remained unchanged at 7.6% in June, compared to May, while experts had projected a decrease to 7.5%. Current data submitted another positive signal after Wednesday, when a separate report stated that US private sector managed to add 188 000 job positions in the month of June, outstripping expectations of an increase by 160 000 jobs. Recent economic data boosted optimism over the outlook on US growth and added to expectations that the Federal Reserve Bank will begin scaling back its Quantitative Easing soon enough.

Meanwhile, the pound retreated against the euro, as EUR/GBP cross gained 0.60%, reaching 0.8619.