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COZfx: GBP/USD weekly outlook

Discussion in 'Analisa Fundamental' started by harryer, Nov 11, 2013.

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  1. harryer

    harryer Member

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    COZforex: The pound was lower against the dollar on Friday after strong US nonfarm payrolls data for October bolstered expectations that the Federal Reserve could start to scale back stimulus before the year's end.

    GBP/USD ended Friday’s session at 1.6012, down 0.51% for the day, after falling to session lows of 1.5958 earlier. For the week, the pair was up 0.26%. COZFX strategist Nigel Boynton said, GBP/USD is predicted to find support at 1.6028, and a drop through could take it to the next support line of 1.5966. Meanwhile, the pair is predicted to find its first resistance at 1.6134, and a rise through could take it to the next resistance line of 1.6178.

    The US economy added 204,000 jobs in October, the Department of Labor said Friday, significantly higher than the 125,000 expected by economists. The unemployment rate ticked up to 7.3% from an almost five year low of 7.2% the previous month.

    The robust data indicated that the US economy shrugged off the impact of the government shutdown and fuelled expectations that the Fed may start to reduce its USD85 billion-a-month asset purchase program as soon as next month. The report came one day after official data showed that the US economy grew at an annual rate of 2.8% in the 3 months to September, well above expectations for growth of 2%.

    In the UK, data on Friday showed that the trade deficit widened to GBP9.82 billion in September from GBP9.55 billion in August. Economists had been expecting a trade deficit of GBP9.2 billion. The report said that in the 3 months to September exports declined by 4.6% while imports rise 1.3%.

    The weak trade data raised concerns that UK third quarter growth would be dragged down. Preliminary data released last month showed that the UK economy expanded by 0.8% in the third quarter.

    The Bank of England left interest rates on hold at 0.5% on Thursday and made no changes to the GBP375 billion quantitative easing stimulus programs.

    In the week ahead, investors will be closely watching Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve. Meanwhile, the Bank of England is to publish its closely watched quarterly inflation report.


    (COZ forex UK)
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