GBP/USD posts modest gains above the mid-1.2600s amid mixed US data

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  • GBP/USD trades on a stronger note near 1.2663 in Friday’s early Asian session. 
  • The US labour market remains robust, with jobless claims declining. 
  • The UK preliminary Manufacturing PMI for February came in at 47.1 versus 47.0, better than expected. 

The GBP/USD pair posts modest gains above the mid-1.2600s during the early Asian trading hours on Friday. The decline of the US Dollar (USD) provides some support to the major pair. At press time, GBP/USD is trading at 1.2663, adding 0.02% on the day. 

The US Initial Jobless Claims for the week ending February 17 fell to 210K from the previous weeks of 213K. Continuing Claims dropped to 1.862M, below expectations and the prior week. The report suggested the US labor market remains robust and might convince the Federal Reserve (Fed) to delay cutting interest rates.

Investors have pushed back their expectations for the first rate cut from the Fed to June from May due to a solid job market and hotter-than-expected inflation readings in January.

On Thursday, the US Manufacturing PMI improved to 51.5 in February from 50.7 in the previous reading, better than the estimation of 50.5, the highest reading in 16 months. Meanwhile, the Services PMI eased to 51.3 in February from 52.5 in January, weaker than 52.00 expected. 

On the Pound Sterling front, the UK preliminary Manufacturing PMI for February came in at 47.1 versus 47.0, missing market expectations of 47.5. The Services PMI was unchanged at 54.3 but above the consensus of 54.1. Finally, the Composite PMI arrived at 53.3, against expectations and the previous reading of 52.9. 

Moving on, investors will take more cues from the Fed Christopher J. Waller speech on Friday. Next week, the US Gross Domestic Product Annualized (GDP) for the fourth quarter will be released. 

 

GBP/USD

Overview
Today last price 1.2665
Today Daily Change 0.0031
Today Daily Change % 0.25
Today daily open 1.2634
 
Trends
Daily SMA20 1.2636
Daily SMA50 1.2679
Daily SMA100 1.2523
Daily SMA200 1.2567
 
Levels
Previous Daily High 1.2642
Previous Daily Low 1.2603
Previous Weekly High 1.2688
Previous Weekly Low 1.2536
Previous Monthly High 1.2786
Previous Monthly Low 1.2597
Daily Fibonacci 38.2% 1.2627
Daily Fibonacci 61.8% 1.2618
Daily Pivot Point S1 1.261
Daily Pivot Point S2 1.2587
Daily Pivot Point S3 1.2571
Daily Pivot Point R1 1.265
Daily Pivot Point R2 1.2666
Daily Pivot Point R3 1.2689

 

 

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