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GBP/USD – Pound Choppy on Soft UK Data

The British pound is choppy on Tuesday, as the pair trades in the mid-1.60 range in the Tuesday North American session. On the release front, Manufacturing Production dipped to 0.1%. The NIESR GDP Estimate edged lower in September, with a 0.7% gain. In the US, employment data remained sharp as JOLTS Job Openings jumped to 4.84 million.

British Manufacturing Production, the week’s fist key event, disappointed with a 0.1% gain, slipping from 0.3% a month earlier. This marked a 3-month low, and comes on the heels of a soft Manufacturing PMI. Is the manufacturing sector showing signs of strain? Meanwhile, NIESR GDP Estimate also weakened. The indicator dipped to 0.7%, compared to 0.8% a month earlier. This monthly release helps analysts track GDP, which is published just once each quarter. The indicator edged up to 0.7%,

US job numbers continue to impress. On Tuesday, JOLTS Job Openings climbed to 4.84 million, up from  4.67 million a month earlier. The indicator is on a strong upward trend, indicative of the US employment sector. Last week, Nonfarm Employment change rebounded in September, climbing to 248 thousand. This exceeded expectations of 216 thousand. The unemployment rate dipped to 5.9%, the first time it’s been below the 6% threshold in over six years. With QE slated to end later this month, the focus will shift to the timetable for an interest rake hike. Strong employment numbers such as these could put pressure on the Fed to make an interest rate move sooner rather than later in 2015, and increased speculation about a rate move will likely boost the dollar even further.

GBP/USD for Tuesday, October 7, 2014

GBP/USD October 7 at 16:00 GMT

GBP/USD 1.6073 H: 1.6128 L: 1.6026


GBP/USD Technical

S3 S2 S1 R1 R2 R3
1.5717 1.5864 1.6000 1.6141 1.6263 1.6382


Further levels in both directions:


OANDA’s Open Positions Ratio

GBP/USD ratio is pointing to gains in short positions on Tuesday, reversing the direction seen a day earlier. This is not consistent with the pair’s movement, as the pound has shown almost no net movement. The pair has a majority of long positions, indicative of trader bias towards the pound moving  higher.

GBP/USD Fundamentals

* Key releases are in highlighted bold.

*All release times are GMT


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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