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5 Jun 2013
GBP/USD muted on mixed ISM
FXstreet.com (London) - The Institute for Supply Management released the June Non-manufacturing ISM which printed at 53.7, just above expectations of a 53.5 print, and above last month's disappointing 53.1.
GBP/USD has had a pop at 1.5400 in Europe on the ADP employment disappointment. “It is not that the ADP report is particularly accurate on a month-to-month basis, but it does appear to steal some of the thunder of the US payroll report. Moreover, this is particularly important given the speculation around the Fed's tapering. Last month, the ADP under-estimated the private sector rise in payrolls by 57k, or nearly 30%. The Bloomberg consensus is for a 165k increase.” Said BBH Global strategy team.
The pair is comfortable oscillating between a tight range 1.5435/70. Technically speaking, GBPUSD has just continued to drift higher in its corrective mode really as mentioned. Analysts at Commerzbank suspect that the corrective rebound will extend further to the 78.6% retracement resistance at 1.5470. “However, we continue to view the current strength as corrective only. We will maintain an overall negative bias while capped by the 1.5601 May high,” said Karen Jones, senior analysts at Commerzbank.
The broader range is among key support at 1.5150 and key resistance at 1.5535. The general trend basis is to the downside from 1.5770 targeting 1.4355.
GBP/USD has had a pop at 1.5400 in Europe on the ADP employment disappointment. “It is not that the ADP report is particularly accurate on a month-to-month basis, but it does appear to steal some of the thunder of the US payroll report. Moreover, this is particularly important given the speculation around the Fed's tapering. Last month, the ADP under-estimated the private sector rise in payrolls by 57k, or nearly 30%. The Bloomberg consensus is for a 165k increase.” Said BBH Global strategy team.
The pair is comfortable oscillating between a tight range 1.5435/70. Technically speaking, GBPUSD has just continued to drift higher in its corrective mode really as mentioned. Analysts at Commerzbank suspect that the corrective rebound will extend further to the 78.6% retracement resistance at 1.5470. “However, we continue to view the current strength as corrective only. We will maintain an overall negative bias while capped by the 1.5601 May high,” said Karen Jones, senior analysts at Commerzbank.
The broader range is among key support at 1.5150 and key resistance at 1.5535. The general trend basis is to the downside from 1.5770 targeting 1.4355.