Pound Sterling Price News and Forecast: GBP/USD correction's life-line jeopardized by US NFP beat
|GBP/USD analysis: Reaches September low levels
On Friday morning, the GBP/USD currency pair reached the zone of the September and October low levels at 1.3413/1.3433.
A passing of the support zone at 1.3413/1.3433 would leave the pair with no close-by technical support on the hourly candle chart. The pair could look for support in round exchange rate levels as the 1.3400 and 1.3350. However, take into account that at the start of next week new weekly pivot points will impact the pair. Namely, support levels could be placed in the range from 1.3400 to 1.3350. Read more...
GBP/USD's correction's life-line jeopardized by US NFP beat
US September Nonfarm Payrolls arrived as +531K vs. the expected +425K and weigh on cable. GBP/USD has been on the back foot ever since the Bank of England disappointed markets with a surprise hold and today's Nonfarm Payrolls have potentially hammered the nail in the proverbial coffin. On the release of the numbers, GBP/USD is slightly offered, down some 0.40% on the day so far, traveling from a high of 1.3509 to a low of 1.3424.
Prior to today's jobs data, Initial Claims came in at 269k vs. 275k and a revised 283k (was 281k) the previous week, while continuing claims came in at 2.105 mln vs. 2.150 mln and a revised 2.239 mln (was 2.243 mln) the previous week. Read more...
GBP/USD: Strength of BoE pushback against higher rates hits the pound – MUFG
The pound has continued to trade at weaker levels following yesterday’s dovish Bank of England (BoE) policy surprise which triggered a sharp repricing of rate hike expectations for the coming years. Economists at MUFG Bank expect the GBP to suffer further downside motion if the “Old Lady” fails to respond to higher inflation.
“On balance, we expect that the BoE will feel comfortable to raise rates as soon as at their next policy meeting in December although there is a risk it waits a little longer until February.” Read more...
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