- The pound manages to stay above the psychological support at the 1.3600 area.
- US economic data was better than expected, DXY sideways above 91.00.
GBP / USD is hovering around 1.3650, modestly bearish for the day. The US dollar does not show a clear direction during the US session as it cannot benefit from better than expected US economic data.
Data above expectations, continues the BoE
In the US, the ADP report showed a surprisingly high level of private job growth during January. The service sector data also beat expectations, with the ISM unexpectedly rising to the strongest level in two years. The figures point to a positive surprise in the official employment report on Friday.
The DXY is trading at 91.10, flat during the day and close to the monthly high. The numbers did not boost the dollar, although US yields moved higher. On Wall Street, the Dow Jones fell 0.12% and the Nasdaq gained 0.15%.
Furthermore, in the UK, data from the services sector exceeds expectations. Attention now turns to the Bank of England which will announce its monetary policy decision on Thursday. It will be the first post-Brexit meeting. No changes are expected. Mentions of negative interest rates will likely have an impact. In 2021, expectations about the Bank of England rate cut waned, supporting the pound in the market.
From a technical perspective, the GBP / USD pair is moving without a clear direction, still showing a negative bias in the very short term. A break below 1.3600 would trigger further losses. A recovery above 1.3700 would negate the bearish bias.
Technical levels
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