GBP/USD has posted losses on Tuesday and is trading in the mid-1.67 range in the North American session. On the release front, UK Manufacturing Production met expectations and the NIESR GDP Estimate posted another strong reading. Over in the US, the dollar got a boost after strong employment data, as JOLTS Job Openings improved sharply.
There was more good news on the US employment front, as JOLTS Job Openings jumped to 4.46 million, up sharply from 4.01 million a month earlier. This easily beat the estimate of 4.04 million, and comes on the heels of a positive Nonfarm Payrolls last week. The strong reading has helped the dollar posts gains against the pound on Tuesday.
The British economy continues to post solid numbers, as the economic recovery deepens. UK Manufacturing Production, a key release, posted a strong gain of 0.4%, matching the forecast. The NIESR GDP estimate, which helps analysts track GDP on a monthly basis, posted another strong gain, coming in at 0.9%. Last week’s PMIs releases were not quite as high as expected, but the readings pointed to continued expansion in the services, construction and manufacturing sectors. As widely expected, the BOE maintained its monetary course on Thursday, making no changes to interest rate levels or its asset purchase scheme. The benchmark interest rate remains at 0.50%, while QE continues to be pegged at 375 billion pounds. The strong numbers out of the UK have increased speculation about a rate increase before the end of the year, but the BOE continues to insist that no action will be taken until 2015.
In the US, employment numbers were solid late last week. Unemployment Claims and Nonfarm Employment Change, both key indicators, met market expectations. Unemployment Claims came in at 312 thousand, slightly above the estimate of 309 thousand. Nonfarm Employment Change met modest expectations on Friday, adding 217 thousand new jobs. The estimate stood at 214 thousand. The Unemployment Rate stayed pegged at 6.3%, beating the estimate of 6.4%. Solid employment numbers add to the likelihood that the Federal Reserve will continue to trim its QE program, which it plans to wind up by the end of 2014.
GBP/USD for Tuesday, June 10, 2014
GBP/USD June 10 at 15:05 GMT
GBP/USD 1.6762 H: 1.6818 L: 1.6752
- GBP/USD has posted losses on Tuesday. The pair dipped below the 1.68 line during the European session.
- 1.6825 is a weak resistance line. 1.6920 is stronger.
- The round number of 1.67 is providing support. 1.6605 is stronger.
- Current range: 1.6700 to 1.6825.
Further levels in both directions:
- Below: 1.6700, 16605, 1.6463 and 1.6286
- Above: 1.6825, 16920, 1.70 and 1.7192
OANDA’s Open Positions Ratio
GBP/USD is unchanged in Tuesday trading. This is not consistent with the movement of the pair, as the pound has lost ground against the dollar. A majority of the positions in the GBP/USD ratio are short, indicative of a trader bias towards the dollar continuing to move higher.
GBP/USD has lost ground. The pair is unchanged in the North American session.
- 8:30 British Manufacturing Production. Estimate 0.4%. Actual 0.4%.
- 8:30 British Industrial Production. Estimate 0.4%. Actual 0.4%.
- 9:36 British 10-year Bond Auction. Actual 2.82%.
- 11:30 US NFIB Small Business Index. Estimate 96.1 points. Actual 96.6 points.
- 14:00 US JOLTS Job Openings. Estimate 4.04M. Actual 4.46M.
- 14:00 US Wholesale Inventories. Estimate 0.6%. Actual 1.1%.
- 14:00 British NIESR GDP Estimate. Actual 0.9%.
*Key releases are highlighted in bold
*All release times are GMT