News - GBP/USD erases gains, pulls away from 3-week highs

Pound erases gains against dollar after U.S. data

The pound erased gains against the U.S. dollar on Friday, pulling away from three-week highs after the release of upbeat U.S. nonfarm payrolls data as well as a disappointing U.S. trade balance report.

GBP/USD pulled away from 1.6786, the pair's highest since February 17, to hit 1.6729 during U.S. morning trade, down 0.06%.

Cable was likely to find support at 1.6658, the low of March 5 and resistance at 1.6823, the high of February 17.

The U.S. Bureau of Labor Statistics said the economy added 175,000 jobs in February, compared to expectations for a 149,000 increase. January's figure was revised up to a 129,000 gain from a previously estimated 113,000 rise.

The U.S. private sector added 162,000 jobs last month, exceeding expectations for a 154,000 rise. January's figure was revised up to a 145,000 increase from a previously estimated 142,000 gain.

The report also showed that the U.S. unemployment rate ticked up to 6.7% in February, from 6.6% the previous month. Analysts had expected the unemployment rate to remain unchanged last month.

Meanwhile, data also showed that the U.S. trade deficit expanded to $39.1 billion in January, from $38.98 billion in December, whose figure was revised from a previously estimated deficit of $38.7 billion.

Analysts had expected the trade deficit to expand to $39.00 billion in January.

In the U.K., official data showed that consumer inflation expectations for the next 12 months slipped to 2.8% in the fourth quarter, from 3.6% in the previous quarter.