- GBP/USD pays little heed to the Brexit uncertainty amid overall USD weakness.
- Markets turn pessimistic ahead of the US jobs report, considering the latest forward-looking indicators.
- UK PM’s Brexit plan gain support at home but the EU demand full/better detail in one week.
With the worries concerning the US fundamentals weighing over the Brexit headlines, the GBP/USD pair takes the bids to 1.2350 while heading into the London open on Friday.
US ISM Non-Manufacturing Purchasing Managers’ Index (PMI) joining the previous manufacturing gauge from the same surveyor, coupled with pessimistic signals from the survey components, the US Dollar (USD) stretches its pullback from the two-year top.
With this, cable trades shrugged off early-day headlines suggesting the European Union (EU) has given one week’s time to the United Kingdom’s (UK) Prime Minister (PM) Boris Johnson to present better deal. The Guardian also mentions the bloc’s requirement of full details. On the other hand, the same might have highlighted The Sun’s news that the Tory leader is likely to gain support of 30 Labour rebels that can help his Brexit deal pass through the UK’s House of Commons.
Looking forward, investors will be more concerned with the September month employment data, namely Nonfarm Payrolls (NFP), Unemployment Rate and Average Hourly Earnings while also keeping an eye on the US Federal Reserve Chairman Jerome Powell’s speech at the “Fed Listens” event.
While the headline NFP is likely to rise to 145K from 130K prior, TD Securities say, “Our expectation for payrolls should do little to assuage fears of a broader economic slowdown. Two weak ISM reports help to cement that US data momentum is on the ebb. This leaves the USD tactically vulnerable to sliding further as it runs rich against most of the G10.”
The 130-pip area between 50-day and 21-day simple moving averages (SMA), 1.2250 and 1.2380 respectively, could keep the pair’s moves confined with overall downtrend prevailing unless buyers clear seven-month long falling trend-line, at 1.2540 now.
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.