8 Nov 2013
GBP/USD dips to fresh lows near 1.6060
FXstreet.com (Edinburgh) -Disappointing results from the external sector of the UK economy are dragging the GBP/USD to another test of intraday lows around 1.6060 on Friday.
GBP/USD weaker after data
The persistent UK trade deficit remains a concern in the British economy, this time it widened to £9.816 billion during September, missing estimates at £9.2 billion and higher than August’s £9.557 billion (revised). The next risk event for GBP will be today’s US Payrolls ahead of next week’s key UK employment data and inflation figures. “The momentum of the economy has built up more rapidly than the MPC forecasted in August’s Inflation Report, and this has contributed towards a faster decline in unemployment, this combined with the decision to leave things on hold turns all the attention to next week’s inflation report which will be monitored with serious interest”, noted Jonathan Pryor, Corporate Treasury Analyst at Investec.
GBP/USD important levels
The pair is now losing 0.02% at 1.6074 and a break below 1.6010 (low Nov.7) would target 1.5949 (low Nov.5) and finally 1.5904 (low Nov.4). On the upside, the initial hurdle aligns at 1.6118 (high Nov.6) followed by 1.6122 (61.8% 1.6258-1.5904) and then 1.6143 (high Oct.29).
GBP/USD weaker after data
The persistent UK trade deficit remains a concern in the British economy, this time it widened to £9.816 billion during September, missing estimates at £9.2 billion and higher than August’s £9.557 billion (revised). The next risk event for GBP will be today’s US Payrolls ahead of next week’s key UK employment data and inflation figures. “The momentum of the economy has built up more rapidly than the MPC forecasted in August’s Inflation Report, and this has contributed towards a faster decline in unemployment, this combined with the decision to leave things on hold turns all the attention to next week’s inflation report which will be monitored with serious interest”, noted Jonathan Pryor, Corporate Treasury Analyst at Investec.
GBP/USD important levels
The pair is now losing 0.02% at 1.6074 and a break below 1.6010 (low Nov.7) would target 1.5949 (low Nov.5) and finally 1.5904 (low Nov.4). On the upside, the initial hurdle aligns at 1.6118 (high Nov.6) followed by 1.6122 (61.8% 1.6258-1.5904) and then 1.6143 (high Oct.29).