{"id":114048,"date":"2017-10-04T08:57:38","date_gmt":"2017-10-04T12:57:38","guid":{"rendered":"http:\/\/countingpips.com\/?p=114048"},"modified":"2017-10-04T08:57:38","modified_gmt":"2017-10-04T12:57:38","slug":"sterling-claws-back-losses-adp-in-focus","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/10\/sterling-claws-back-losses-adp-in-focus\/","title":{"rendered":"Sterling claws back losses, ADP in focus"},"content":{"rendered":"
October 4, 2017<\/div>
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Article by ForexTime<\/a><\/p>\n

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Sterling received a lifeline on Wednesday, after U.K services unexpectedly accelerated in September; easing some concerns over the health of the economy.<\/p>\n

The purchasing manager\u2019s Index for the UK\u2019s services beat market estimates in September, by rising to 53.6 from August\u2019s 53.2. While the rebound in services is encouraging and may support expectations for higher UK interest rates, some fears still linger over the cooldown in manufacturing and contraction in construction. Sentiment towards Sterling still remains fragile despite today\u2019s appreciation, with prices destined to dip lower as Brexit fueled uncertainties, repel investor attraction towards the currency.<\/p>\n

Speaking of uncertainty, the lack of progress in the Brexit talks has left market players anxious. This anxiety can be reflected in the Sterling\u2019s overall price action, with the GBPUSD currently trading below 1.3300 as of writing. Taking a look at the currency from a technical perspective, prices are still depressed on the daily charts.\u00a0 Previous support around 1.3300 could transform into a dynamic resistance that results in a further decline towards 1.3150.<\/p>\n

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Dollar lower ahead of ADP<\/strong><\/p>\n

The Greenback depreciated slightly against a basket of major currencies on Wednesday, ahead of the US ADP private sector jobs data and ISM non-manufacturing PMI for September.<\/p>\n

Economists have forecasted that ADP will rise by 131k in the month of September, after an initial print of 237k in August. The negative impacts of Hurricane Irma and Harvey are likely to add some random ingredients into the mix and such, could result in a weaker jobs print.<\/p>\n

Technical traders will continue to closely observe how the Dollar Index behaves, before and after the ADP release this afternoon. A disappointing figure may encourage short term bears to target 93.00. In an alternative scenario, a daily close above 93.70 should open a path back towards 94.00.<\/p>\n

Commodity spotlight \u2013 WTI Crude<\/strong><\/p>\n

WTI Crude was under noticeable selling pressure this week as investors started to question the sustainability of an oil rally, which lasted for a fair chunk of the third quarter.<\/p>\n

Market players who were itching for an opportunity to send the commodity lower, received permission on Tuesday after U.S industry estimates on inventories were a mixed bag. \u00a0U.S Crude oil inventories declined by 4.08 million barrels last week while the API reported on Tuesday that Gasoline supplies rose by 4.91 million barrels. However, Gasoline supplies rose by 4.91 million barrels and this rekindled some oversupply concerns.<\/p>\n

Investors will continue to closely watch for signs on whether OPEC will extend their production cuts beyond the current expiry date of March 2018. While an extension of the deal may support oil prices, this could encourage U.S Shale producers to increase production.\u00a0 As the final trading quarter of 2017 gets underway, Oil markets are likely to be exposed to downside risks, if rising production in the United States obstructs OPEC\u2019s efforts to rebalance the saturated markets.<\/p>\n

Focusing on today, the Energy Information Administration (EIA) report, will be in the spotlight which could compound oil\u2019s downside, if it follows the same pattern as yesterday\u2019s API report.<\/p>\n

From a technical standpoint, WTI Crude is under assault by sellers on the daily chart. Sustained weakness below $50 may encourage a further decline towards $49.50 and $48.50, respectively.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer:\u00a0<\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime Sterling received a lifeline on Wednesday, after U.K services unexpectedly accelerated in September; easing some concerns over the health of the economy. The purchasing manager\u2019s Index for the UK\u2019s services beat market estimates in September, by rising to 53.6 from August\u2019s 53.2. While the rebound in services is encouraging and may support […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-114048","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/114048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=114048"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/114048\/revisions"}],"predecessor-version":[{"id":114053,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/114048\/revisions\/114053"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=114048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=114048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=114048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}