GBP/USD consolidates near 1.3750 ahead of US NFP data


  • GBP/USD prints losses for the straight seventh day.
  • US dollar stands strong after the mixed US economic data, NFP data eyed.
  • The sterling lost its ground post-disappointing economic data, BOE dovish stance.

The strong buying interest in the US dollar continues to pressurize GBP/USD. The pair refreshed a new multi-month low on Friday in the initial Asian trading hours.

At the time of writing, GBP/USD is trading at 1.3760, down 0.05% for the day.

The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades above 92.50, with 0,13% gains. Investors analyzed a sooner than expected rate hike from the Fed in the near future.

The Upbeat economic data also enhances the USD valuations. The US Initial Jobless Claims fell to 364K, compared with market expectations at 390K. This is the lowest reading in the last 15-month.

The IHS Markit US Manufacturing Purchasing Managers Index (PMI) came at 62.1, marginally down by the market consensus at 62.6. The US Construction Spending declined 0.3% in May.

The ISM Manufacturing PMI dropped 60.6 in June from 61.2 in May, below the market estimated at 61. The readings pointed to a slowdown in new orders but still reflected the robust factory growth.

In addition to that, the International Monetary Fund (IMF) raised its 2021 US growth forecast sharply to 7.0% due to strong economic recovery and on the anticipation that US President Joe Biden ambitious infrastructure plan will be enticed. The US dollar jumped on the optimism.

On the other hand, the sterling came under renewed selling pressure following the dovish comments from the Bank of England’s (BOE) Governor Andrew Bailey. He shrugged off inflationary pressures as temporary due to shifts in base effects and supply-demand imbalances.
 
On the economic data front, The IHS Markit/CIPS UK Manufacturing PMI came at 63.9 in June, below the market expectations at 64.2.

Meantime, the EU and UK on Wednesday agreed to put the sausage war on hold for the next three months. 

As for now, investors await the US Non Farm payroll data, Balance of Trade, and Unemployment Rate to gauge the market sentiment.

GBP/USD additional levels

GBP/USD

Overview
Today last price 1.3761
Today Daily Change -0.0070
Today Daily Change % -0.51
Today daily open 1.3831
 
Trends
Daily SMA20 1.4006
Daily SMA50 1.403
Daily SMA100 1.3952
Daily SMA200 1.364
 
Levels
Previous Daily High 1.3873
Previous Daily Low 1.3799
Previous Weekly High 1.4001
Previous Weekly Low 1.3787
Previous Monthly High 1.4249
Previous Monthly Low 1.3787
Daily Fibonacci 38.2% 1.3827
Daily Fibonacci 61.8% 1.3845
Daily Pivot Point S1 1.3795
Daily Pivot Point S2 1.376
Daily Pivot Point S3 1.3721
Daily Pivot Point R1 1.387
Daily Pivot Point R2 1.3909
Daily Pivot Point R3 1.3945

 

 

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