GBP/USD extends its downside above the mid-1.2500s, US Jobless Claims data eyed


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  • GBP/USD remains under selling pressure around 1.2560 on the stronger USD.
  • Analysts anticipate the Fed will hold rates until at least July, later than earlier thought.
  • Bank of England’s Bailey said interest rates in the UK will need to stay at current levels for some time.
  • Investors await the weekly US Jobless Claims for fresh impetus.

The GBP/USD pair extends its downside above the mid-1.2500s during the early Asian trading hours on Thursday. The downtick of the pair is backed by the firmer US Dollar (USD) broadly. In the absence of economic data released from the UK docket later this week, the GBP/USD pair remains at the mercy of USD price dynamics. At press time, the major pair is trading at 1.2560, gaining 0.03% for the day.

Even though US Federal Reserve (Fed) Chair Jerome Powell said last week that central banks will prepare to tighten policy further if it becomes appropriate to do so, the markets believe that the tightening cycle is now over. According to a Reuters poll, analysts anticipate the Fed will hold interest rates until at least July, later than earlier thought.

About the data, Automatic Data Processing Inc. revealed on Wednesday that ADP private payrolls grew 103K in November from 106K in October, below the market consensus of 130K.

On the GBP’s front, Bank of England (BoE) Governor Andrew Bailey said on Wednesday that interest rates in the UK will need to stay at current levels for some time and the central bank is aware of financial stability risks that may develop from that.

Additionally, Bailey further stated that the overall risk environment was challenging due to China's economic difficulties, the potential broader conflict in the Middle East, and elevated levels of public debt. This, in turn, might weigh on the British Pound (GBP) and act as a headwind for the GBP/USD pair.

Moving on, traders will monitor the weekly US Jobless Claims, due later on Thursday. The highlight of the week will be the US employment data on Friday, including Nonfarm Payrolls and Unemployment Rate. The November Nonfarm Payrolls is expected to add 185K jobs while the Unemployment Rate is estimated to remain steady at 3.9%.

 

GBP/USD

Overview
Today last price 1.2554
Today Daily Change -0.0002
Today Daily Change % -0.02
Today daily open 1.2556
 
Trends
Daily SMA20 1.2516
Daily SMA50 1.2324
Daily SMA100 1.2469
Daily SMA200 1.248
 
Levels
Previous Daily High 1.2614
Previous Daily Low 1.2552
Previous Weekly High 1.2733
Previous Weekly Low 1.2591
Previous Monthly High 1.2733
Previous Monthly Low 1.2096
Daily Fibonacci 38.2% 1.2576
Daily Fibonacci 61.8% 1.259
Daily Pivot Point S1 1.2534
Daily Pivot Point S2 1.2512
Daily Pivot Point S3 1.2472
Daily Pivot Point R1 1.2596
Daily Pivot Point R2 1.2636
Daily Pivot Point R3 1.2658

 












 

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