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Mid-Day Report: Sterling Lifted by Job Data, Dollar MixedSterling strengthens strongly today as lifted by stronger than expected job data. Jobless claims rose 1.2k in August versus expectation of -5.1k fall, which was a disappointment. However, Unemployment rate dropped to 5.5% in July versus expectation of being unchanged at 5.6%. That's the lowest level since 2008. Also, wage grew 2.9% yoy in the three months through July, hitting the fastest pace since early 2009. Some economists noted that the solid job data showed recent softness in other economic data would be temporary only. And the overall recovery in UK economy remained healthy. And BoE is still on course to hike interest rate next year. Yesterday, Sterling was weighed down briefly as CPI slowed to 0.0% yoy in August. Also released from Europe, Eurozone CPI was revised lower to 0.1% yoy in August while CPI core slowed to 0.9% yoy. Swiss ZEW expectations rose sharply to 9.7 in September. | |
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GBP/USD Mid-Day OutlookDaily Pivots: (S1) 1.5295; (P) 1.5376; (R1) 1.5422; More... Intraday bias in GBP/USD is turned neutral again on today's recovery. Above 1.5474 will extend the rebound from 1.5817 resistance. That will revive the case that rebound from 1.4565 is resuming. But in that case, we'd expect strong resistance from 61.8% retracement of 1.7190 to 1.4565 at 1.6187 to limit upside. Meanwhile, below 1.5329 minor support will likely send the pair through 1.5164 support to 61.8% retracement of 1.4565 to 1.5929 at 1.5086 and below. |
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Orders and Options Watch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Session: Orders and Options WatchGBP: Cable extended intra-day rebound and offers at 1.5425-30 and 1.5450 were filled, however, sell orders are still noted at 1.5480, 1.5500-10 and 1.5530. On the downside, bids are now seen at 1.5425-30, 1.5400 and 1.5385-90, buy orders are expected at 1.5350-60 and 1.5320-30, buying interest is located at 1.5300, 1.5285 and 1.5260, fresh demand should emerge around 1.5230 and 1.5200. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Trade Idea Update: GBP/USD - Buy at 1.5400As cable has staged a strong rebound after the release of stronger-than-expected UK data, suggesting the correction from 1.5476 has ended at 1.5330 yesterday and retest of said resistance would be seen, however, break there is needed to confirm the rise from 1.5164 has resumed and extend further gain to 1.5493-93 Trade Idea Update: USD/JPY - Buy at 119.95The greenback staged a strong rebound after finding good support at 119.40 yesterday (a hammer candlestick pattern was formed on the hourly chart), suggesting low has possibly been formed there and consolidation with upside bias is seen for gain to resistance at 120.84, however, break there is needed to retain bullishness and signal the correction from 121.35 has ended at 119.40, bring further gain to 121.00, then towards said resistance at 121.35 Candlesticks Intraday Trade Ideas Update Schedule (GMT): Elliott Wave Daily Trade Ideas Update Schedule (GMT): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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