The Pound Sterling (GBP) slides below 1.3000 against the US Dollar (USD) in Wednesday’s New York session after the release of the United States (US) macroeconomic data. The GBP/USD pair faces sharp selling pressure as the US Dollar recovers sharply after the US ADP Employment Change for October came in surprisingly higher-than-expected. US private employers added 233K workers, much higher than 159K in September, upwardly revised from 143K. Economists expected a slower private labor growth at 115K.
The scenario of robust private hiring will diminish fears of a deteriorating job market, which would weaken Federal Reserve (Fed) dovish bets for the remainder of the year. According to the CME FedWatch tool, the central bank is expected to cut interest rates further by 25 bps in both policy meetings in November and December.
For more updates on the current labor market status, investors will pay close attention to the US Nonfarm Payrolls (NFP) data for October, which will be published on Friday.
Meanwhile, the US Bureau of Economic Analysis (BEA) has reported that the US economy expanded by 2.8% in the third quarter of the year, slower than estimates and the former reading of 3.0%.
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Swiss Franc.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.06% | 0.58% | -0.02% | 0.11% | -0.19% | -0.02% | 0.20% | |
EUR | -0.06% | 0.53% | -0.05% | 0.05% | -0.26% | -0.08% | 0.14% | |
GBP | -0.58% | -0.53% | -0.58% | -0.47% | -0.79% | -0.61% | -0.37% | |
JPY | 0.02% | 0.05% | 0.58% | 0.12% | -0.18% | -0.02% | 0.21% | |
CAD | -0.11% | -0.05% | 0.47% | -0.12% | -0.31% | -0.14% | 0.10% | |
AUD | 0.19% | 0.26% | 0.79% | 0.18% | 0.31% | 0.18% | 0.40% | |
NZD | 0.02% | 0.08% | 0.61% | 0.02% | 0.14% | -0.18% | 0.24% | |
CHF | -0.20% | -0.14% | 0.37% | -0.21% | -0.10% | -0.40% | -0.24% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
The Pound Sterling falls below 1.3000 against the US Dollar (USD) in North American trading hours on Wednesday. The GBP/USD pair holds the lower boundary of a Rising Channel chart formation around 1.2900 on the daily time frame.
The near-term trend of the Cable remains uncertain as it stays below the 50-day Exponential Moving Average (EMA), which trades around 1.3070.
The 14-day Relative Strength Index (RSI) stays above 40.00. A fresh bearish momentum would trigger if it fails to climb above it.
Looking down, the 200-day EMA near 1.2845 will be a major support zone for Pound Sterling bulls. On the upside, the Cable will face resistance near the 20-day EMA around 1.3060.
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