GBP/USD: Satisfactory NFP to keep cable on a positive note

GBP/USD is trading up +0.31% to 1.2513 amid an upbeat market mood. Today, all eyes are on US Nonfarm Payrolls, which are expected to show an ongoing recovery and, therefore, the cable should be underpinned, FXStreet’s analyst Yohay Elam informs.

Key quotes

“GBP/USD has broken above the downtrend resistance line and surged to new highs – buoyed by hopes of a coronavirus vaccine. Pfizer and BioNTech reported progress in initial tests, pushing stocks higher. That put pressure on the safe-haven dollar. Another effort to defeat COVID-19 is underway at Oxford University and is at a more stage – at least according to Dr. Anthony Fauci, America’s leading epidemiologist. That seemed enough to outweigh all of sterling’s issues.”

“The focus now shifts to the all-important US Nonfarm Payrolls. Economists expect an increase of around three million jobs in June – extending the recovery from April’s approximate 2.5 million bounce. The world’s largest economy lost around 20 million positions back in April.” 

“The US hit a record number of daily infections on Wednesday and Texas fatalities reached the highest in six weeks. Stocks remain upbeat, but that may change later on.”