There were no data releases from the UK on Friday. Traders are, despite recent uptrend, wary of the currency given a poor reading of the health of the Britain's huge services sector where the prospect of Britain's leaving the European Union rattled business sentiment last month. And while Britain's economy continues to outpace many of its European peers, investors have become convinced it will not be strong enough any time soon to justify a rise in interest rates. Investors worry a "Brexit", which is likely to weigh on growth and push back UK rate hike expectations, would also threaten the huge foreign investment flows Britain needs to balance its current account deficit, one of the biggest in the developed world at around 4 percent of output.
Focus of the US session was on Trade Balance and NFP figures. The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that the goods and services deficit was $45.7 billion in January, up $1.0 billion from $44.7 billion in December, revised. Deficit of $43.8 billion was anticipated. January exports were $176.5 billion, $3.8 billion less than December exports. January imports were $222.1 billion, $2.8 billion less than December imports.
Employers added more workers in February than projected but wages unexpectedly declined, dashing hopes that reduced slack in the labor market was starting to benefit all Americans. The 242,000 gain followed a 172,000 rise in January that was larger than previously estimated, a Labor Department report showed Friday. The jobless rate held at 4.9% as people entered the labor force and found work. Average hourly earnings dropped, the first monthly decline in more than a year.
There will be no data releases both from UK and USA on Monday so we can expect a bit steadier session, especially after huge movements in the pair recently.
