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Sep 05 - 03:55 PM

GBP/USD - Bulls Keep Focus On 2024 High As Fed Rate Drama Plays Out

By Paul Spirgel  —  Sep 05 - 01:35 PM
  • GBP$ firm in NY afternoon, +0.17% at 1.3171; Thursday range 1.3180-1.3139

  • Soft ADP data, lwr ISM n-Mfg employment weigh on USD pre-NFP Friday

  • Sterling set for a run higher amid widening Fed-BoE rate expectations

  • NFP f/c 160k vs 114k in July, range 100k-246k; earnings seen slightly higher

  • LSEG's IRPR pricing 100% odds for Fed -25bp in Sep, 40% odds for -50bp

  • Wider U.S.-UK rate outlook likely to keep GBP$ bid, on way to new 2024 highs

  • GBP$ res 1.3180 Thurs high, 1.32 Aug 30 high, 1.3269 2024 high hit on Aug 27

  • Supt 1.3139 Thurs low, 1.3131 the 55-HMA, 1.3088 Sep 3 daily low

  • Bulls in control above 1.2967 the 50% Fib of 1.2667-1.3269

Source:
Refinitiv IFR Research/Market Commentary

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