x
Breaking News
0

Pound Rally Continues On Strong UK Housing Report, Weak U.S. Jobs

By Kenny FisherForexSep 08, 2017 01:59AM ET
www.investing.com/analysis/gbpusd--pound-rally-continues-on-strong-uk-housing-report-weak-us-job-200212059
Pound Rally Continues On Strong UK Housing Report, Weak U.S. Jobs
By Kenny Fisher   |  Sep 08, 2017 01:59AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The British pound has resumed its upward movement in the Thursday session. In North American trade, GBP/USD is trading at 1.3094, up 0.40% on the day. On the release front, British Halifax HPI picked up speed, with a strong gain of 1.1%. This easily beat the estimate of 0.2%. In the US, unemployment claims jumped to 298 thousand, well above the estimate of 245 thousand. On Friday, the UK releases Manufacturing Production, which is expected to improve to 0.3%.

The red-hot US labor market appears to have cooled off, as recent employment indicators have been weak. On Thursday, unemployment claims jumped to 298 thousand, the highest level since April 2015. This follows weak readings in July for nonfarm payrolls and wage growth. However, the sharp rise in jobless claims can be attributed to Hurricane Harvey, which led to thousands of displaced workers in Texas filing for unemployment benefits. Unemployment numbers could remain high in upcoming weeks, until flooded areas are able to get on their feet and reconstruction projects begin, which should translate into lower jobless numbers.

One of the biggest losers in the Brexit saga will be the City of London, which stands to lose its status as the primary financial hub in Europe. There are plenty of players across the Channel casting an eye on the spoils after Britain leaves the European Union. Frankfurt and Dublin are the two main contenders, with Paris and Amsterdam are also hoping to lure large financial companies when they downsize operations in London. On Wednesday, Deutsche Bank chief executive John Cryan argued that Frankfurt is ideally suited to take over from London as the financial hub for European banks, saying it has the structures in place to take over from London. Analysts estimate that London could lose up to 30,000 jobs in the financial services sector, with clients moving up to 1.8 trillion euros in assets from the UK to the continent. Germany could gain 30% of these jobs, which would mark a huge post-Brexit boon for the country.

GBP/USD Fundamentals

Thursday (September 7)

  • 3:30 British Halifax HPI. Estimate 0.2%. Actual 1.1%
  • 8:30 US Unemployment Claims. Estimate 245K. Actual 298K
  • 8:30 US Revised Nonfarm Productivity. Estimate 1.3%. Actual 1.5%
  • 8:30 US Revised Unit Labor Costs. Estimate 0.3%. Actual 0.2%
  • 10:00 US IBD/TIPP Economic Optimism. Estimate 53.1. Actual 53.4
  • 10:30 US Natural Gas Storage. Estimate 63B. Actual 65B
  • 11:00 US Crude Oil Inventories. Estimate 4.1M. Actual 4.6M
  • 19:00 US FOMC Member William Dudley Speaks

Friday (September 8)

  • 4:30 British Manufacturing Production. Estimate 0.3%

*All release times are GMT

*Key events are in bold

GBP/USD for Thursday, September 7, 2017

GBP/USD Chart: September 6-7
GBP/USD Chart: September 6-7

GBP/USD September 7 at 11:55 EDT

Open: 1.3043 High: 1.3116 Low: 1.3033 Close: 1.3109

GBP/USD Technical

S1 S2 S1 R1 R2 R3
1.2865 1.2946 1.3058 1.3159 1.3267 1.3347
  • GBP/USD was flat in the Asian session. The pair posted gains in European trade and is steady in the North American session
  • 1.3058 as switched to a support line following gains by GBP/USD on Thursday
  • 1.3159 is the next resistance line

Further levels in both directions:

  • Below: 1.3058, 1.2946, 1.2865 and 1.2767
  • Above: 1.3159, 1.3267 and 1.3347
  • Current range: 1.3058 to 1.3159

OANDA’s Open Positions Ratio

GBP/USD ratio remains unchanged this week. Currently, long positions have a slender majority (52%), indicative of slight trader bias towards GBP/USD continuing to move upwards.

Original post

Pound Rally Continues On Strong UK Housing Report, Weak U.S. Jobs
 

Related Articles

Pound Rally Continues On Strong UK Housing Report, Weak U.S. Jobs

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
 
 
 
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email