GBP/USD climbs above 1.3620 approaches the tops of the week

  • The British pound trims Wednesday’s losses is trading near the tops of the week.
  • The market sentiment is upbeat benefits high-beta currencies like the pound, the aussie, and the kiwi.
  • US Initial Jobless Claims dropped more than expected, adding to the positive ADP Employment Change report.

The GBP/USD is recovering some of Wednesday’s losses, climbs 0.32%, near the tops of the week, trading at 1.3626 during the New York session at the time of writing.

A positive market sentiment surrounds the market, as witnessed by European and US equity markets, rising between 1.46% and 2.09%. Further, risk-sensitive currencies, like the pound, the aussie, and the kiwi, are advancing. The US debt ceiling solution, although short-term, it was a relief for investors. Additionally, Russia’s offer to ease Europe’s energy crisis sums up the upbeat tone.

In the meantime, the US Dollar Index, which tracks the greenback’s performance against a basket of six peers, is down 0.14%, sitting at 94.10.

US Jobless Claims dropped more than foreseen, QE’s reduction could be on its way

In the UK, the Halifax House Prices for September edged higher, more than the previous reading. On an annually based, it rose by 7.4%, higher than 4.9% expected, whereas the monthly basis heightened to 1.7%, more than 0.8%, estimated.

Across the pond, the second out of three jobs related report reading was better than expected. The US Initial Jobless Claims increased to 326K lower than the 348K, foreseen by analysts.  According to the report, “The advance number for seasonally adjusted insured unemployment during the week ending September 25 was 2,714,000, a decrease of 97,000 from the previous week’s revised level.”

That said, the US labor market seems to be improving with two out of three positive reports. On Friday, the US economic docket will feature the Nonfarm Payrolls report. Economists expect the creation of 488K new jobs in the economy. If the outcome comes in line or better than expected, investors could expect a bond tapering announcement by the FOMC’s November meeting.


Our Source

Please Like and Share:

Leave a Reply

Your email address will not be published.