CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

GBPUSD struggles to break key resistance

Article By: ,  Financial Analyst
October 1, 2020 5:47 PM
The US Dollar was bearish against most of its major pairs on Thursday with the exception of the GBP and JPY. On the US economic data front, Initial Jobless Claims fell to 837K for the week ending September 26th (850K expected), from a revised 873K in the week before. Continuing Claims dropped to 11,767K for the week ending September 19th (12,200K expected), from a revised 12,747K in the prior week. Personal Income slipped 2.7% on month in August (-2.5% expected), compared to a revised +0.5% in July. Personal Spending rose 1.0% on month in August (+0.8% expected), compared to a revised +1.5% in July. Markit's US Manufacturing Purchasing Managers' Index unexpectedly declined to 53.2 on month in the September final reading (53.5 expected), from 53.5 in the September preliminary reading. Finally, Construction Spending increased 1.4% on month in August (+0.7% expected), compared to a revised +0.7% in July. 

On Friday, Change in Nonfarm Payrolls for September are expected to drop to 872K on month, from 1,371K in August. The Unemployment Rate for September is anticipated to shrink to 8.2% on month, from 8.4% in August. The University of Michigan's Consumer Sentiment Index for the September final reading is expected to rise to 79.0 on month, from 78.9 in the September preliminary reading. Factory Orders for August are expected to increase 0.9% on month, compared to +6.4% in July. Finally, Durable Goods Orders for the August final reading are expected to increase 0.4% on month, in line with the August preliminary reading.                             

The Euro was mixed against most of its major pairs. In Europe, the European Commission has confirmed starting the process to take the U.K. into court over its Internal Market Bill. The Markit Germany Manufacturing Purchasing Managers' Index (PMI) for September was released at 56.4 (vs 56.6 expected). The Markit European Manufacturing PMI for September was published at 53.7, as expected. The August Unemployment rate was at 8.1%, as expected. The Markit U.K. Manufacturing PMI for September was released at 54.1, vs 54.3 expected.

The Australian dollar was bullish against most of its major pairs with the exception of the NZD.  

One of the largest losers on the day was the GBP/USD which declined 30 pips to 1.289 in Thursday's trading. The pair can't seem to break above the 1.2985 level (Green Line). Support remains at 1.2675 with a target lower at 1.251 as long as resistance is not broken.



Source: GAIN Capital, TradingView

Happy Trading

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024