GBP/USD drops to 2-week near 1.3000 despite USD weakness

• Brexit headlines weigh on the British pound on Friday.
• February nonfarm payroll data from the U.S. disappoint.
• US Dollar Index remains on track to post its highest weekly close of 2019.

Although the dismal job market data from the U.S. put the greenback under pressure in the NA session on Friday, the GBP/USD pair struggled to gain traction on latest Brexit headlines and edged lower to touch its lowest level since February 22 at 1.3004. As of writing, the pair was trading at 1.3020, losing 0.5% on a daily basis.

According to the monthly report published by the U.S. Bureau of Labor Statistics, nonfarm employment in the U.S. rose by only 20,000 in February to miss the market expectation of 180,000. With the initial reaction to the data, the US Dollar Index slumped to a daily low of 97.25. However, the fact that the unemployment edged down to 3.8% and January’s NFP reading got revised up to 311,000 helped the greenback limit its losses. At the moment, the DXY is down 0.22% on the day at 97.40 and remains on track to post its highest weekly close of 2019.

On the other hand, several news outlets recently reported that the EU’s Chief Brexit Negotiator  Michel Barnier will tell ambassadors that there was no progress in Brexit talks. Furthermore, the EU has reportedly made two new proposals to the U.K. on the backstop and they are still waiting for a response. Now markets are waiting for Barnier to make a statement on their offer to the UK.

Earlier in the day, British Prime Minister Theresa May’s spokeswoman told reporters that the PM had no plans to travel to Brussels over the weekend.

Technical levels to watch for