Forex - GBP/USD steady after ADP nonfarm payrolls data

Published 10/03/2012, 08:38 AM
GBP/USD
-
EUR/GBP
-
Investing.com - The pound remained steady against the U.S. dollar on Wednesday, hovering close to a three-week low after data showed that the U.S. private sector added more jobs than forecast last month.

GBP/USD hit 1.6084 during European afternoon trade, the pair’s lowest since September 13; the pair subsequently consolidated at 1.6100, shedding 0.19%.

Cable was likely to find near-term support at 1.6062, the low of September 12 and resistance at 1.6141, the session high.

Payroll processing firm ADP said U.S. non-farm private employment increased by a seasonally adjusted 162,000 in September, surpassing expectations for an increase of 143,000.

The previous month’s figure was revised down to a gain of 189,000 from a previously reported increase of 201,000.

Sterling remained under pressure after data showed that the U.K. service sector shed jobs for the first time in 10 months in September as growth slowed; undermining hopes for a sustained recovery in the recession hit economy.

The Markit/CIPS U.K. services PMI fell to 52.2 in September from 53.7 in August, against expectations for a reading of 53.1.

The data came as weak service sector data out of the euro zone and China fuelled concerns over the global economic outlook and dampened investor demand for higher-yielding assets.

Meanwhile, uncertainty over the timing of a Spanish bailout persisted after the country’s prime minister said Tuesday that a request for aid was not imminent, despite ongoing speculation that Madrid is moving closer to requesting external financial aid.

The pound was slightly lower against the euro, with EUR/GBP easing up 0.12% to 0.8017.

Later in the day, the Institute of Supply Management was to produce data on U.S. service sector activity.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.