26 Sep 2013
GBP/USD baffled on mixed US data
FXstreet.com (Athens) – The GBP/USD initially fell sharply downwards after the release of better than expected US labor data, but soon pared all of its losses.
GBP/USD rejects the initial sharp fall on solid US data; now upwards again
The cable found itself losing almost 15 pips after the data released, showed much fewer US jobless claims. Soon, while the other data were not terribly exciting (GDP was unchanged at 2.5% in its third and final release), the GBP/USD pared all of its loses and moved back in the previous territory. While most of investors would not be really taken aback by the data, traders should bear anyway in mind that in a FOMC- data dependent era, market is hungry enough for solid US labor data. Thus, the better than expected data – less jobless claims- might well spur a more meaningful recovery in the greenback as it dampens the Fed’s scope to retain its highly accommodative monetary policy.
Technical Analysis and Strategic Bias on GBP/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that “the GBP/USD seems to have found short term support at 1.5954. While a weekly TD perfected set up exists AND the 2009-2013 downtrend at 1.6331 directly overhead caps, the risk remains on the downside. Attention shifts to the 1.5735 3 month uptrend while the current September high at 1.6160 caps.”
GBP/USD rejects the initial sharp fall on solid US data; now upwards again
The cable found itself losing almost 15 pips after the data released, showed much fewer US jobless claims. Soon, while the other data were not terribly exciting (GDP was unchanged at 2.5% in its third and final release), the GBP/USD pared all of its loses and moved back in the previous territory. While most of investors would not be really taken aback by the data, traders should bear anyway in mind that in a FOMC- data dependent era, market is hungry enough for solid US labor data. Thus, the better than expected data – less jobless claims- might well spur a more meaningful recovery in the greenback as it dampens the Fed’s scope to retain its highly accommodative monetary policy.
Technical Analysis and Strategic Bias on GBP/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that “the GBP/USD seems to have found short term support at 1.5954. While a weekly TD perfected set up exists AND the 2009-2013 downtrend at 1.6331 directly overhead caps, the risk remains on the downside. Attention shifts to the 1.5735 3 month uptrend while the current September high at 1.6160 caps.”