7 Aug 2015
GBP/USD: comeback after Nonfarm Payrolls
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5482 with a high of 1.5547 and a low of 1.5423.
GBP/USD is drifting back towards the 1.55 handle after the non farm Payrolls initial selloff in cable that went from 1.5520 resistance zone down to test below 1.5440.
Today's Nonfarm Payrolls data backs sentiment for a hike from the Fed as early as September. "The headlines are that payrolls rose 215k with 14k upward revisions to the last two months so on balance is pretty close to the 225k consensus, " explained James Knightley, analyst at ING Bank. "It is strong enough to keep the September rate hike our central case."
The downside is a continuation of yesterdays Super thursday with the BoE coming across less hawkish than what had been priced into the pound on the basis of a number of hawkish sounding officials from the BoE over the last month leading into yesterday's BoE inflation report and interest decision.
Only one BoE official voted in favour of the bank starting to raise interest rates this month, in contrast to wider expectations. The strength of the pound was said to undoubtably creating downside pressure on the inflation by Carney yesterday. He added that timing of a rate hike would be data dependant and energy prices bear down on inflation until mid 2016.
GBP/USD technically bearish below 1.5630
Karen Jones, chief analyst at Commerzbank explained that GBP/USD has been held in check by the 1.5691 July high but also the 1.5467 July 24 low. While these two extremes hold, further range trading will remain on the cards.
"Only a daily close above 1.5691 would allow the 1.5815 May high to be engaged and possibly the 1.5930 June high to be reached. Similarly only a fall through the recent 1.5467 low would put the 200 day moving average at 1.5384 as well as the July trough at 1.5330 back on the map."
GBP/USD is drifting back towards the 1.55 handle after the non farm Payrolls initial selloff in cable that went from 1.5520 resistance zone down to test below 1.5440.
Today's Nonfarm Payrolls data backs sentiment for a hike from the Fed as early as September. "The headlines are that payrolls rose 215k with 14k upward revisions to the last two months so on balance is pretty close to the 225k consensus, " explained James Knightley, analyst at ING Bank. "It is strong enough to keep the September rate hike our central case."
The downside is a continuation of yesterdays Super thursday with the BoE coming across less hawkish than what had been priced into the pound on the basis of a number of hawkish sounding officials from the BoE over the last month leading into yesterday's BoE inflation report and interest decision.
Only one BoE official voted in favour of the bank starting to raise interest rates this month, in contrast to wider expectations. The strength of the pound was said to undoubtably creating downside pressure on the inflation by Carney yesterday. He added that timing of a rate hike would be data dependant and energy prices bear down on inflation until mid 2016.
GBP/USD technically bearish below 1.5630
Karen Jones, chief analyst at Commerzbank explained that GBP/USD has been held in check by the 1.5691 July high but also the 1.5467 July 24 low. While these two extremes hold, further range trading will remain on the cards.
"Only a daily close above 1.5691 would allow the 1.5815 May high to be engaged and possibly the 1.5930 June high to be reached. Similarly only a fall through the recent 1.5467 low would put the 200 day moving average at 1.5384 as well as the July trough at 1.5330 back on the map."