{"id":61353,"date":"2014-10-03T07:41:59","date_gmt":"2014-10-03T11:41:59","guid":{"rendered":"http:\/\/countingpips.com\/?p=61353"},"modified":"2014-10-03T08:06:10","modified_gmt":"2014-10-03T12:06:10","slug":"sterling-poised-to-test-september-lows","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/10\/sterling-poised-to-test-september-lows\/","title":{"rendered":"Sterling Poised to Test September Lows"},"content":{"rendered":"
October 3, 2014<\/div>
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Article by ForexTime<\/a><\/p>\n

The GBP\/USD has been drifting lower over the past couple of trading sessions. Cable has breached below 1.6100 and its 200-week moving average at 1.6089, while negative momentum is taking hold. A sub-forecast U.K. service PMI figure<\/span> for September, helped drive the composite PMI to six-month low, generating headwinds for the currency pair and fits with the slowing pace of economic recovery. The data also follows<\/span> remarks by BoE MPC member Broadbent, who said earlier in the week that the economy is not ready for a rate hike.<\/p>\n

Market participants are still anticipating a rate hike in Q1 next year, though with incrementally less conviction as signs that Eurozone economic stagnation is affecting the UK which is now becoming increasingly evident.<\/p>\n

The U.K. Markit services PMI weaker than expected at 58.7 in September, a three-month low and down from August\u2019s 60.5. The median forecast had been for a dip to 59.0. The composite PMI for September dipped to a six-month low of 58.1, down from 59.7 in August. Markit<\/span> estimates that the surveys point to Q3 GDP growth of 0.8% quarter over quarter, which would be near to the 0.9% growth seen in Q2. This risk, however, as Markit<\/span> points out, is that growth will disappoint during Q4 as a consequence of the stagnation in the Eurozone economy. The BoE has forecast that the recent phase of fast-paced recovery is likely to wane over the next year.<\/p>\n

In the U.S. the<\/span> September nonfarm payrolls are expected to increase by 200k, with a 195k private payroll gain.\u00a0 The risk is to the upward, due continued strength in claims, confidence and sentiment. The unemployment rate is expected to hold steady at 6.1% for a second month. The workweek<\/span> is expected to hold steady at 34.5 for seventh month<\/span>. Hourly earnings are expected to grow 0.2% which<\/span> would leave a 2.1% year over year rise.<\/p>\n

The GBP\/USD is testing the September lows at 1.6050 as negative momentum accelerates.\u00a0 Resistance is seen near the 10-day moving average near 1.6250.\u00a0 The MACD (moving average convergence divergence) index has generated a sell signal.\u00a0 This occurs when the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread. The index has moved from positive to negative territory confirming the sell signal.<\/p>

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Article by ForexTime The GBP\/USD has been drifting lower over the past couple of trading sessions. Cable has breached below 1.6100 and its 200-week moving average at 1.6089, while negative momentum is taking hold. A sub-forecast U.K. service PMI figure for September, helped drive the composite PMI to six-month low, generating headwinds for the currency […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-61353","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/61353","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=61353"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/61353\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=61353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=61353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=61353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}