The Sterling has resumed its broader bearish trend during Tuesday’s London trading session. The uninspiring UK employment figures have endorsed the theory that the BoE might start cutting rates ahead of schedule, which has punished the GBP.
The Claimant count range increased below expectations but wage growth eased to 6% YoY in the three months before February, from from 6.1% in the previous period. But above all, the unemployment rate increased to 4.2% disappointing the market that had forecasted a 4% rate, unchanged from the previous month.
The US Dollar maintains its bullish trend intact, fuelled by higher US Treasury yields. The 10-year benchmark yield is trading at year-to-date highs near 4.70%. The 2-year yield the most closely related to interest rate expectations remains pinned to the key 5% level.
Later on Tuesday BoE Governor Bailey is expected to meet the press although the highlight of the week in the UK will be Wednesday’s CPI data, which is expected to have cooled significantly. Also on Tuesday, Fed Governor, Jerome Powell is expected to participate in a panel discussion in Washington. His comments about monetary policy might have some impact on US Dollar crosses.
Bears have pushed the pair back to the bottom of the monthly descending channel, at 1.2430, which is being tested at the moment. Last Friday’s low is right below there, at 1.2430. A clear break of that support area clears the path towards 1.2370. Further down there is no support until 1.2220.
On the upside 1.2505 level should be cleared to advance towards 1.2565, where an unmitigated order block may provide a fresh boost for bears.
Overview | |
---|---|
Today last price | 1.2436 |
Today Daily Change | -0.0010 |
Today Daily Change % | -0.08 |
Today daily open | 1.2446 |
Trends | |
---|---|
Daily SMA20 | 1.2615 |
Daily SMA50 | 1.2653 |
Daily SMA100 | 1.2667 |
Daily SMA200 | 1.2582 |
Levels | |
---|---|
Previous Daily High | 1.2499 |
Previous Daily Low | 1.2436 |
Previous Weekly High | 1.2709 |
Previous Weekly Low | 1.2427 |
Previous Monthly High | 1.2894 |
Previous Monthly Low | 1.2575 |
Daily Fibonacci 38.2% | 1.246 |
Daily Fibonacci 61.8% | 1.2475 |
Daily Pivot Point S1 | 1.2421 |
Daily Pivot Point S2 | 1.2397 |
Daily Pivot Point S3 | 1.2358 |
Daily Pivot Point R1 | 1.2484 |
Daily Pivot Point R2 | 1.2523 |
Daily Pivot Point R3 | 1.2547 |
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