The dollar dipped versus major currencies Friday after the government reported a sharp decline in December jobs.
What prices are doing: The dollar dropped 0.8% versus the euro to $1.442 and fell 0.6% against the British pound to $1.603. The greenback edged down 0.8% versus the yen to ¥92.68 after hitting a 4-month high against the Japanese currency Thursday.
By Mohammed Isah of fxtechstrategy.com
GBP-USD: With the pair failing to force a further corrective recovery through the 1.6234/39 levels and declining to close lower the past week, risk continues to be seen towards its Dec. 30 low at 1.5830.
A clean invalidation of that level will clear the way for a run at the 1.5706 level, its Oct. 13 low, with a sustained break below there seeing a 100% price retracement (from 1.5706- 1.6875 levels) and opening the door for additional downside towards its .50 Ret (1.3501-1.7041 rally) at 1.5273.
This view is consistent with its short-term downtrend. Its weekly stochastics are negative and pointing lower, suggesting further downside.
The dollar gained versus major currencies and briefly surged to a four-month high against the yen Thursday after Japan’s finance minister said he wants to see a weaker yen.
The dollar was little changed versus major currencies on Tuesday after reports showed that pending home sales fell in November and U.S. factory orders rose.