'Goldilocks' US data sees the Euro the big winner, British pound sterling emerges as the loser

The British pound sterling (Currency:GBP) has not reacted well to today's US Non-Farm data release; an occasion of great importance for markets and the US dollar.

A look at the spot markets shows the euro to be the clear winner with the euro dollar exchange rate now 0.23 pct higher at 1.3217 and the euro pound exchange rate 0.22 pct higher at 0.8508.

The pound to US dollar rate is meanwhile 0.45 pct down at 1.5529.

Note that the above quotes are taken from the wholesale markets, your bank will affix their own discretionary spread. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you more currency. Please learn more here.

"Based on the price action in the FX market, investors are relieved to see an increase in job growth. Even though the unemployment rate ticked higher and wage growth stagnated, non-farm payrolls beat expectations, rising 175K compared to a forecast of 163K which was good enough to squeeze the dollar higher," says Kathy Lien at BK Asset Management.

"For FX traders, the main question is whether today’s number will halt the aggressive decline in the U.S. dollar," says Lien.

Marcus Bullus, trading director at MB Capital, comments:

"If ever there was a Goldilocks number, this is it.

"US job growth is neither too hot nor too cold - and the market's fears about QE tapering have dissolved like sugar in a bowl of warm oatmeal.

"The spectre of the Fed winding down its monetary stimulus has weighed heavily on the equity markets this week, but the news that America is creating jobs at a steady rather than stellar rate means QE will remain firmly on the table.

"However the manufacturing sector's shedding of 8000 jobs is a niggling cause for concern, and a reminder that though the US economy is firing on all cylinders again, the road ahead is still bumpy."