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Pound Modestly Higher Amid Risk Appetite
The pound advanced against its most major counterparts in the Asian session on Thursday amid risk appetite, as weak private sector employment data from the U.S. underpinned hopes for the prospect of rate cuts by the Federal Reserve.
A report from payroll processor ADP showed U.S. private sector job growth reaccelerated in the month of June but still fell below forecasts.
The U.S. trade deficit widened by more than anticipated in May and there was a notable slowdown in the pace of service sector growth.
Weak data pointed to slowing growth in the world’s largest economy, supporting hopes for a rate cut.
The Labor Department’s closely watched monthly jobs report is due on Friday. U.S. employment is expected to increase by 160,000 jobs in June after an increase of 75,000 jobs in May. The jobless rate is expected to hold at 3.6 percent.
The currency fell against its most major counterparts on Wednesday, as dovish comments from BoE Governor Mark Carney raised concerns about an interest rate cut in the coming months.
The pound edged up to 135.72 against the yen, from a low of 135.43 hit at 5:15 pm ET. If the pound rises further, 138.00 is seen as its next resistance level.
The pound appreciated to 1.2591 against the greenback, following a decline to 1.2562 at 5:15 pm ET. The next possible resistance for the pound is seen around the 1.27 mark.
After dropping to 1.2395 against the franc at 5:00 pm ET, the pound reversed direction, rising to 1.2415. On the upside, 1.26 is possibly seen as the next resistance for the pound.
On the flip side, the pound held steady against the euro, after slightly easing back to 0.8964 at 1:15 am ET. The pound is seen finding support around the 0.88 mark.
Looking ahead, Eurozone retail sales for May are scheduled to be released in the European session.
U.S. stock markets are closed in observance of Independence Day.
The material has been provided by InstaForex Company – www.instaforex.com
