GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP declined 0.13% against the USD and closed at 1.5804. The US Dollar rose after data revealed that initial jobless claim in the US unexpectedly declined during the week ended September 06, 2013.
The Pound traded with a downward bias, after the Bank of England (BoE) Governor, Mark Carney, stated that the central bank has no plan to hike interest rates until unemployment drops further. He defended his view on the central bank’s interest rate policy as MPs voiced concerns that it may be baffle the public and had failed to convince investors. The Governor also stated that unemployment would be slower to drop than investors think, and stated that his flagship communications policy is supporting the economic recovery of the nation.
In the Asian session, at GMT0300, the pair is trading at 1.5797, with the GBP trading slightly lower from yesterday’s close.
Earlier today, the Bank of England (BoE), in its quarterly bulletin on bank capital and liquidity, urged banks to maintain thicker capital buffers to ensure the safety and soundness of the lenders.
The pair is expected to find support at 1.5767, and a fall through could take it to the next support level of 1.5738. The pair is expected to find its first resistance at 1.5834, and a rise through could take it to the next resistance level of 1.5872.
With a light domestic calendar today, economic data from the US and Europe are likely to determine the near term trend for the riskier assets, including the Pound.
The currency pair is trading just below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
