13 Sep 2013
GBP/USD little moved after Carney, US job data
FXstreet.com (Athens)- Just a day after the GBP/USD spiked above 1.5750, seems to have lost its momentum, despite the awesome data on behalf of US and Carney’s speech in the parliament.
GBP/USD on a resilient mode ahead of today’s retail sales data
The cable seems to have adapted a very resilient approach on the data and major events after the sharp movement on Wednesday. Under normal circumstances, the currency may have extended the volatile swell following the better-than-expected employment data reported Thursday on behalf of US labor department on momentum alone. Yet, the cable’s backdrop is proving more introspective of the underlying fundamental conditions than many expect. Carney reported to say that “because 35% of unemployed are long term unemployed, they keep a 6.5% medium-term unemployment target, and not a natural 5%,”, as well as that “for better transparency new MPC members must declare if they are operating under current forward guidance their own policy.” What’s more, Carney reported to say to Parliament that “BoE policy is now more effective, which you could call loosening,” and that “he supported and inflation knockout and it helps anchor inflation expectations.” Also mentioned that “he reiterated his 2016 timeline forecast for keeping rates low.” While the sterling didn’t suffer regarding the above statement, gilts did gain. Elaborating on, the 10-year yield has dropped back below 3.00 percent.
Strategic Bias on GBP/USD
According to Karen Jones, Head Technical Analyst of Commerzbank, “Above 1.5830 would introduce scope to 1.6036, the 78.6% retracement of the move down from December 2012, which is expected to hold and provoke failure.”
Technical Outlook on GBP/USD
At the time of writing, the pair is trading at 1.5790, down 0.09%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support can be found at 1.5658, 1.5616, 1.5577, and resistance at 1.5812, 1.5863 and 1.5921, respectively.
GBP/USD on a resilient mode ahead of today’s retail sales data
The cable seems to have adapted a very resilient approach on the data and major events after the sharp movement on Wednesday. Under normal circumstances, the currency may have extended the volatile swell following the better-than-expected employment data reported Thursday on behalf of US labor department on momentum alone. Yet, the cable’s backdrop is proving more introspective of the underlying fundamental conditions than many expect. Carney reported to say that “because 35% of unemployed are long term unemployed, they keep a 6.5% medium-term unemployment target, and not a natural 5%,”, as well as that “for better transparency new MPC members must declare if they are operating under current forward guidance their own policy.” What’s more, Carney reported to say to Parliament that “BoE policy is now more effective, which you could call loosening,” and that “he supported and inflation knockout and it helps anchor inflation expectations.” Also mentioned that “he reiterated his 2016 timeline forecast for keeping rates low.” While the sterling didn’t suffer regarding the above statement, gilts did gain. Elaborating on, the 10-year yield has dropped back below 3.00 percent.
Strategic Bias on GBP/USD
According to Karen Jones, Head Technical Analyst of Commerzbank, “Above 1.5830 would introduce scope to 1.6036, the 78.6% retracement of the move down from December 2012, which is expected to hold and provoke failure.”
Technical Outlook on GBP/USD
At the time of writing, the pair is trading at 1.5790, down 0.09%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support can be found at 1.5658, 1.5616, 1.5577, and resistance at 1.5812, 1.5863 and 1.5921, respectively.