British pound continues to move higher in Tuesday trading. GBP/USD is trading in the low-1.57 range in the North American session. In economic news, US JOLTS Jobs Openings disappointed, dropping to a six-month low. Today’s sole UK release was the auction for 30- year bonds.
US employment data looked sluggish on Tuesday, as JOLTS Jobs Openings dropped from 3.94M in July to 3.69M in August. This was way off the estimate of 3.96M, and was the weakest showing since March. This comes on the heels of a poor Non-Farm Payrolls late last week. The key indicator 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.
Meanwhile, tensions over Syria continue. A US military strike is likely, but the diplomatic activity continues in an attempt to end the crisis without a US attack. The story is expected to unfold as early as this week, as Congress gears up for a vote on whether to approve military action against Syria. We can expect some volatility in the markets as the crisis continues.
Over in the UK, 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 Tuesday, September 10, 2013
GBP/USD September 10 at 15:30 GMT
GBP/USD 1.5723 H: 1.5728 L: 1.5686
- GBP/USD has posted modest gains on Tuesday. For the second straight day, the pair pushed above the 1.57 line in North American trading.
- The pair continues to face 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 pointing to movement towards long positions. This is reflected in the pair’s current movement, as the pound continues to push to higher ground. The 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 Tuesday trading. We could see GBP/USD continue to trade in the low-1.57 range during the North American session.
- 9:34 British 30-year Bond Auction. Actual 3.74%.
- 11:30 US NFIB Small Business Index. Estimate 94.8 points. Actual 94.0 points.
- 14:00 US JOLTS Jobs Openings. Estimate 3.96M. Actual 3.69M.
*Key releases are highlighted in bold
*All release times are GMT
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