British Pound Sterling Live: GBP all over the shop following an interesting set of Payroll data out of the US

Highlights:

@ 13:35: US Non-Farm Payrolls released - market chaos ensues

@ 9:45: Good trade balance release

16:00: What will we be watching next week?

The UK data calendar calms down in the week commencing the 10th of June; however currency traders are offered some potential sterling-shifting events. Check 'em out here.

14:20: British pound reaction to Non-Farm data

There are no rules on the currency markets this afternoon following the much awaited Non-Farm Payroll release.

A look at the latest spot rates shows a very interesting mix:

The pound to US dollar is 0.6 pct lower at 1.5505.
The pound to euro is 0.32 pct lower at 1.1741.
The pound to Australian dollar is 0.86 pct higher at 1.6400.
The pound to Canadian dollar is 1.18 pct lower at 1.5828.

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

13:35: US Non-Farm Payrolls data is mixed - markets haven't got a clue how to respond

The big data event of the month has just passed. And trading in the first 5 minutes following the result has been incredibly volatile suggesting no one really knows what to make of it. Exciting times.

US May headline NFP change is 175K vs. exp 163K and prior 149K (revised from 165K); unemployment rate ticks up to 7.6% vs. exp 7.5%

Jobless rate increase a bit worrisome though AND wage growth flat.

12:34: Trade data not good enough Britain!

There we were thinking today's UK trade data was pretty decent and were pondering why sterling didn't react in a positive fashion.

The trade data was simply awful in the eyes of Jim Bligh, head of exports policy at the CBI, who is clearly tired of our inability to flog stuff to non-Brits:

"These figures are unsatisfactory. Even though there was modest progress in boosting goods trade outside a struggling European economy in April, there is still a long way to go.

"The Government needs to do more to help raise exports to the fast-growing economies.

"That means raising awareness of UKTI export services and the various export finance schemes, as well as making it easier for smaller firms to access them."

 11:35: Excellent levels to buy USD

 "It’s been a barnstorming week for this pair and these are excellent levels to buy USD," observes Richard Driver at Caxton FX.

Read why the British pound is at such a good level for USD buyers here and read why the US dollar is facing a make or break session today here.

10:20: Upside surprise in today's Non-Farm Payroll data?

TD Securities ahead of today's big event at 13:30:

"In the context of the weakening tone in the US data, this report will be very important in framing the narrative on the recovery ahead of the FOMC meeting later this month. It will provide context for near-term QE tapering risks.

"In defiance of the surprisingly weak print on ISM and ADP employment reports, we continue to expect fairly decent labor market performance."

What would an upside surprise mean for the British pound? Hard to tell but be sure the small correction in GBP-USD currently underway will be confirmed.

9:45: Little support for GBP after trade deficit data improves

The UK's trading position has improved, however the impact on sterling has been minimal confirming currency markets are fixated on the US Non-Farm Payroll data due at 13:30.

UK Goods Trade deficit narrowed to £8.224 billion in April from £9.175 billion in March, according to data released today by National Statistics. Analysts expected the deficit to narrow to only to £8.800 billion.

Total Trade deficit narrowed to £2.579 billion in April from £3.249 billion in March, below projections of reaching £-3.100 billion.

9:40: UK inflation expectations amongst consumers unchanged

A relatively minor release from the Bank of England whose official data just released shows that in Q1 UK consumers expected the price of goods and services to rise by 3.6% during the next 12 months. In Q2 expectations were also of +3.6%.

8:35: What to look out for today

Sterling faces trade balance data at 9:30, this will round up a busy week on the data front. Wednesday's good PMI data really got the momentum behind sterling rolling, the after effects are still with us.
Lloyds Bank Research say:
"Data out this morning is expected to show that the UK trade deficit narrowed, while Germany’s industrial production expanded for a third consecutive month in April. However, any financial market reaction will likely be overshadowed by the release of US non-farm payrolls data later in the afternoon."

8:30: British pound consolidates after week of gains

The British pound sterling (Currency:GBP) is in consolidation mode in the London morning session after what has already been a strong week of gains:

The pound to euro exchange rate is 0.11 pct down on last night's close at 1.1765.
The pound to US dollar exchange rate is 0.12 pct lower at 1.5581.
The pound to Australian dollar is 0.87 pct higher at 1.6397.