The British pound continues to climb higher in Monday trading. GBP/USD has gained about one cent on the day, and is trading in the low-1.57 range in the North American session. The pound has taken advantage of weak US Non-Farm Payrolls on Friday, which has hurt the US dollar. Monday has just two minor releases, as the week starts off slowly. The US will release Consumer Credit, while the UK will publish RICS House Price Balance.
The US ended last week on a disappointing note, as the all-important Non-Farm Payrolls came in at 169 thousand, missing the estimate of 178 thousand. The Unemployment Rate dropped from 7.4% to 7.3%, but this improvement is not all that significant, given the low participation rate in the labor force. The Fed continues to keep its cards away from prying market eyes, but we’re unlikely to see QE tapering without stronger employment numbers. Chicago Fed President Charles Evans hinted that we could see some action on this front from the Fed before the end of the year.
The pound has started off September with a bang, gaining over two cents against the US dollar. British PMIs in the manufacturing, construction and services sectors were all very sharp last week, and the pound took full advantage as it pushed to higher levels. This week’s key release is Claimant Count Change, the most important UK employment indicator. A strong release could fuel the pound’s impressive rally.
GBP/USD for Monday, September 9, 2013
GBP/USD September 9 at 15:15 GMT
GBP/USD 1.5723 H: 1.5732 L: 1.5629
- GBP/USD has posted sharp gains on Monday. The pair posted sharp gains in the European session and pushed above the 1.57 line early in North American trading.
- The pair is facing resistance at 1.5756. This is followed by a resistance line at 1.5877. This line has remained intact since January.
- On the downside, the GBP/USD is receiving support at 1.5645. This is followed by a support level at 1.5527.
- Current range: 1.5645 to 1.5756
Further levels in both directions:
- Below: 1.5645, 1.5527, 1.5432, 1.5309 and 1.5203
- Above: 1.5756, 1.5877, 1.6000 and 1.6125
OANDA’s Open Positions Ratio
The GBP/USD ratio is comprised of a majority of short positions, which reflects a strong bias in favor of the US dollar reversing direction and posting gains against the pound.
The pound keeps on rolling and has pushed above the 1.57 line in Monday trading. Will the rally continue? With no major releases on Monday, we could see GBP/USD level off during the North American session.
- 17:00 US Consumer Credit. Estimate 12.7B.
- 23:01 British RICS House Price Balance. Estimate 38%.
*Key releases are highlighted in bold
*All release times are GMT
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