INTERNATIONAL CURRENCY BUZZ :
- FOREX – Yen holds flat after wages gain for second straight month-
- FOREX – Dollar weaker as rate increase expectations pushed back
- FOREX – Dollar nurses losses after downbeat jobs report
The pound trimmed gains against the U.S. dollar on Monday, after data showed that service sector activity in the U.K. expanded at a slower rate than expected last month, dampening optimism over the strength of the economy. GBP/USD pulled back from 1.5244, the pair’s highest since September 25, to hit 1.5183 during European morning trade, steady for the day. Cable was likely to find support at 1.5123, Friday’s low and resistance at 1.5261, the high of September 25. Research group Markit said its U.K. services purchasing managers’ index fell to 53.3 in September from a reading of 55.6 the previous month. Analysts had expected the index to rise to 56.0 last month.But demand for the dollar remained under pressure after the Labor Department reported on Friday that the U.S. economy added just 142,000 jobs last month, well below expectations of the 203,000 expected by economists.
The dollar slipped lower against the euro and edged up against the yen on Monday, as expectations for a U.S. rate hike before the end of this year weakened following Friday’s downbeat U.S. jobs report. EUR/USD rose 0.25% to trade at 1.1239. The Labor Department reported on Friday that the U.S. economy added just 142,000 jobs last month, well below expectations of the 203,000 expected by economists.August’s reading was revised down to 135,000, from the initial reported figure of 173,000.Average hourly earnings were flat month-on-month and the labor force participation rate fell to just 62.4%, down from 62.6% in August. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.20% at 95.84.
- BUY GBP/USD ABOVE 1.5200 TARGET 1.5220 1.5250 SL 1.5170
- SELL GBP/USD BELOW 1.5150 TARGET 1.5130 1.5100 SL 1.5180