Despite mixed US non-farm payrolls data on Firday, sterling pushed higher against the dollar

Traders remained positive following mixed US payrolls data, which allowed the pound to climb to a high of $1.6409 on Friday before eventually closing at $1.6390.

• Early trading on Friday remained steady, with the pound edging up slightly against the dollar on strong European equities, as traders braced for important US employment figures.
  
• The data in the afternoon proved ambiguous though as traders tried to analyse the dual factors of improved non-farm payrolls, but greater overall unemployment, which rose to 9.7%.
  
• Following the news the pound did drop sharply from a daily high of 1.6386 but its losses were pared around the 1.63 level and it recovered to trade at pre non-farm levels as demand for the safety of the dollar was surprisingly limited.
  
• Analysts said that the worse-than-forecast rise in unemployment could prove a burden on household consumption and spell a very gradual recovery in the US, which may support the dollar value over the medium-term.
  
• There is no trading today on the US markets as it is their Labor Day, so movement is likely to be limited with the pair currently holding steady around the 1.64 level.