Back
2 Dec 2015
GBP/USD nears 1.50 handle, 2-yr treasury yield strengthens
FXStreet (Mumbai) - The GBP/USD pair extended losses to hit a session low of 1.5003, while the two-year treasury yield ticked higher after a strong ADP employment report in the US.
Fed rate hike bets rise after ADP report
The ADP report showed private sector in the US added 217K jobs in November, which was above than the highest forecast in the bloomberg survey. The data showed strong additions in the service sector. Even the manufacturing sector carried a positive job number.
Consequently, the two-year yield, which mimics rate hike bets, advanced to 0.942%; up more than 3bps. The USD followed the yield and moved higher across the board, pushing the GBP/USD pair to a low of 1.5003 levels.
GBP/USD Technical Levels
At 1.5005, the immediate support is seen at 1.4994 (Monday’s low), under which the pair could drop to 1.4951 (Jan 23rd low). A break lower would expose 1.49 handle. On the higher side, resistance is seen at 1.5050 (hourly chart resistance), 1.5065 (hourly 50-MA), above which the gains could be extended to 1.5096 (hourly 100-MA).
Fed rate hike bets rise after ADP report
The ADP report showed private sector in the US added 217K jobs in November, which was above than the highest forecast in the bloomberg survey. The data showed strong additions in the service sector. Even the manufacturing sector carried a positive job number.
Consequently, the two-year yield, which mimics rate hike bets, advanced to 0.942%; up more than 3bps. The USD followed the yield and moved higher across the board, pushing the GBP/USD pair to a low of 1.5003 levels.
GBP/USD Technical Levels
At 1.5005, the immediate support is seen at 1.4994 (Monday’s low), under which the pair could drop to 1.4951 (Jan 23rd low). A break lower would expose 1.49 handle. On the higher side, resistance is seen at 1.5050 (hourly chart resistance), 1.5065 (hourly 50-MA), above which the gains could be extended to 1.5096 (hourly 100-MA).