A rise in risk aversion weighed on the pound on Friday, supporting dollar gains

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.