The GBP/USD pair once again ran into offers as it moved closer to 1.52 levels, but managed to halt the ten day losing streak. Sterling ended largely unchanged at 1.5130 levels after the US Markit and ISM manufacturing PMIs report highlighted the slowdown in the activity. However, the drop in the UK manufacturing PMI report and the increasing probability of a delay in the BOE rate hike bets ensured the Sterling bulls had little room to make a comeback.
UK construction PMI – A non-event
The index is expected to tick higher to 57.5 in September of 57.3. A better-than-expected UK construction PMI report may offer a little respite to the GBP/USD pair pushing it closer to 1.52 levels ahead of the payrolls report. However, the spot could once again stall around 1.52. On the other hand, a weaker-than-expected construction PMI may push the pair below 1.51 levels and make Sterling even more vulnerable heading into the payrolls report as discussed here (Macro Scan)
Technicals – Falling channel on intraday charts
At 1.5140, the GBP/USD pair remains stuck in the falling channel on the intraday charts ahead of the US non-farm payrolls report due for release later today. The channel resistance is seen at 1.5175, while he support is seen at 1.5095. An hourly close above 1.5175 could open doors for 1.5213 and 1.5248 (50% of Apr-Jun rally). On the other side, an hourly close below 1.5095 could push the pair down to 1.5030 levels.
EUR/USD Analysis: Focus on US nonfarm payrolls figure
The EUR/USD pair currently trades around 1.1180 levels, after the bounce from the 200-DMA on Thursday failed to take out 1.12 levels. The European economic calendar is largely empty, thus, the investors are likely to refrain from making big bets ahead of the payrolls report.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 after US data
EUR/USD struggles to build on Wednesday's gains and fluctuates in a tight channel near 1.0700 on Thursday. The data from the US showed that weekly Jobless Claims held steady at 208,000, helping the USD hold its ground and limiting the pair's upside.
GBP/USD fluctuates above 1.2500 following Wednesday's rebound
GBP/USD stays in a consolidation phase slightly above 1.2500 on Thursday after closing in the green on Wednesday. A mixed market mood caps the GBP/USD upside after Unit Labor Costs and weekly Jobless Claims data from the US.
Gold retreats to $2,300 despite falling US yields
Gold stays under bearish pressure and trades deep in negative territory at around $2,300 on Thursday. The benchmark 10-year US Treasury bond edges lower following the Fed's policy decisions but XAU/USD struggles to find a foothold.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.