GBP/USD recovers losses

Above: Eur shoots higher on back of US jobs data disapointment

There is a good degree of action on the currency markets at present; we see the US dollar has taken a knock in the wake of less than inspiring economic data just released.

Worrying the US dollar is news that US jobless claims rose to 343,000 (consensus 340,000), higher than the 336,000 in the previous week.

The jobs data has trounced news that durable goods, ex transportation, were flat in June while capital goods non-defence ex aircraft orders were up a respectable 0.7% last month.  

The disappointing job numbers could however be a blip as Yelena Shulyatyeva at BNP Paribas says:

"The labor market conditions are improving modestly. We are seeing a big disconnect between growth in the labor market and the economy overall. The economy is slowing down while the labor market is holding up." This realistation would explain a recent retracement in EUR/USD. 
Commenting on trade in the euro / dollar exchange rate are FXStreet who see the following key levels:

"At the moment the pair is up 0.26% at 1.3235 with the next resistance at 1.3256 (high Jul.24) ahead of 1.3261 (76.4% of 1.3417-1.2755) and then 1.3302 (high Jun.20). On the downside, a breach of 1.3177 (low. Jul.24) would open the door to 1.3164 (low Jul.23) and finally 1.3150 (MA10d)."