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12 Sep 2013
GBP/USD bounces on up beating US labor data
FXstreet.com (Athens)- The GBP/USD was caught in great volatility ahead of astonishing US labor data, but now pares its losses and stabilizes near its prior level.
GBP/USD bouncing due on “US jobless claims falling to the lowest level since April of 2006.”
Nobody could imagine that it needs to upgrade the computer system, to decrease the jobless claims. But indeed, US labor Department announced that “Computer upgrades in two states explain why jobless claims fell so much', but still says that “this is not necessarily an indication of a change”. Regardless the support of the computer upgrade, traders might see behind the curtains that the “tapering” is “sooner” than “later”. Bloomberg consensus forecasts call for a $10B reduction in QE3 next week, from $45B to $35B in UST purchases, MBS decreasing at $40B.
Strategic Bias and Technical Outlook on GBP/USD
According to the US labor department, the two US states that were not included are Texas and Rhode Island; most recent data shows claims at 15764 and 1362 respectively. Therefore, investors should figure out that apart from the fact that the US jobless claims touched the lowest level since the April of 2006, even without the “technology support”, the report data would be great. At the time of writing the cable managed to pare a portion of its earlier losses and now stands above 1.5800, at 1.5810, down 0.04%. 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.”
GBP/USD bouncing due on “US jobless claims falling to the lowest level since April of 2006.”
Nobody could imagine that it needs to upgrade the computer system, to decrease the jobless claims. But indeed, US labor Department announced that “Computer upgrades in two states explain why jobless claims fell so much', but still says that “this is not necessarily an indication of a change”. Regardless the support of the computer upgrade, traders might see behind the curtains that the “tapering” is “sooner” than “later”. Bloomberg consensus forecasts call for a $10B reduction in QE3 next week, from $45B to $35B in UST purchases, MBS decreasing at $40B.
Strategic Bias and Technical Outlook on GBP/USD
According to the US labor department, the two US states that were not included are Texas and Rhode Island; most recent data shows claims at 15764 and 1362 respectively. Therefore, investors should figure out that apart from the fact that the US jobless claims touched the lowest level since the April of 2006, even without the “technology support”, the report data would be great. At the time of writing the cable managed to pare a portion of its earlier losses and now stands above 1.5800, at 1.5810, down 0.04%. 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.”