The pound slid against the dollar on Friday, completing its third straight weekly decline, as demand for the haven currency found support from weak US employment data.
- In early trading, risk appetite was down, with investors taking up defensive positions ahead of an expected rise in US unemployment figures.
- However with weak data already priced into the market, the pound avoided a further sell off after data confirmed an increase in jobless figures that brought overall unemployment in the US to 9.8%.
- The data did trigger a sharp fall in major stock indices, with traders concerned that the global recovery is struggling to find momentum.
- However, the pound was able to pick itself up from a four-day low of 1.5807 against the dollar, clawing back some of its losses, as European equities rallied slightly, to close the week at $1.5944.
- The price is holding steady this morning, having made initial gains after the G7 meeting over the weekend brought no talk of re-evaluating the strength of the US dollar.