Poor Payrolls Cause USD to Slump While Pound to USD Soars

The Pound took a stronger stance on Friday after the political concerns that placed pressure on the currency had eventually easied with the closing of the local elections.

However, any upside to the Pound remained capped following the speculation surrounding the Scottish election. At the end of the day, the currency finished at 1.1498 against the Euro and 1.3985 against the US Dollar according to the Foreign Exchange Market. 

The Euro closed the week on a high after the single currency benefited from a better-than-expected rebound in German industrial products. It then gathered more momentum after it benefited from a negative correlation with the US Dollar as it took advantage of a sharp retreat in USD exchange rates.

The end of last week saw an aggressive sell-off in the US Dollar following the release of disappointing payroll figures. The latest data saw that only 266,000 jobs had been added during April which was lower than expected as it was estimated that it would increase by 1 million. This week, investors will have a focus on the US consumer price index as a sharp rise in inflation is expected.

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