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14 May 2014
GBP/USD points south after UK data
FXStreet (Edinburgh) - The sterling is now giving away earlier gains, dragging the GBP/USD back to the lower band of the range below 1.6830.
GBP/USD hurt by data
The pair abandoned the 1.6870 region after labour market data in the British economy disappointed investors: the unemployment measured by the Claimant Count Change dropped by 25.1K in April, missing estimates for 30.0K and up from March’s 30.6K (revised) while the jobless rate ticked lower to 6.8% in line with consensus and coming from 6.9% in the previous reading. Next on tap will be the more relevant BoE’s Quarterly Inflation Report. “We expect the pound to remain well supported but any advance today will only be notable if market expectations of a rate increase are pushed into Q4 this year and for today, we think that scenario is unlikely”.
GBP/USD levels to watch
The pair is now up 0.03% at 1.6831 with the next resistance at 1.6883 (high May 13) ahead of 1.6903 (high May 12) and finally 1.6939 (high May 9). On the flip side, a breakdown of 1.6825 (low May 14) would expose 1.6819 (low May 13) and then 1.6805 (low Apr.30).
GBP/USD hurt by data
The pair abandoned the 1.6870 region after labour market data in the British economy disappointed investors: the unemployment measured by the Claimant Count Change dropped by 25.1K in April, missing estimates for 30.0K and up from March’s 30.6K (revised) while the jobless rate ticked lower to 6.8% in line with consensus and coming from 6.9% in the previous reading. Next on tap will be the more relevant BoE’s Quarterly Inflation Report. “We expect the pound to remain well supported but any advance today will only be notable if market expectations of a rate increase are pushed into Q4 this year and for today, we think that scenario is unlikely”.
GBP/USD levels to watch
The pair is now up 0.03% at 1.6831 with the next resistance at 1.6883 (high May 13) ahead of 1.6903 (high May 12) and finally 1.6939 (high May 9). On the flip side, a breakdown of 1.6825 (low May 14) would expose 1.6819 (low May 13) and then 1.6805 (low Apr.30).