- 52% of pending orders in the 100-pip range are to BUY
- SWFX market sentiment is at equilibrium
- Rate faces significant resistance circa 1.34
- Upcoming events: UK CPI y/y, UK PPI Input m/m, UK RPI y/y, US PPI m/m, US Core PPI m/m
The Labour Department stated that the US job openings cooled unexpectedly in the month of October from a record-high registered previously.
According to the JOLTS survey, the number of jobs expecting to be filled dropped 181K to 6.00M, following an upwardly revised 6.18M in the prior month. Meanwhile, the number of hirings grew to 5.55M, with the most of increase coming from hotel and restaurants, the health care industry, financial services and manufacturing.
Fundamentals from both UK and US
Tuesday's trading session will start with the British Consumer Price Index, the Producer Price Index and the Retail Price Index for the month of November to be released at 0930GMT. Meanwhile, the US Bureau of Labour Statistics is to release its Producer Price Index and Core Producer Price Index for November at 1330GMT.
GBP/USD slides to 1.3338
In result of the previous trading session the cable made a rebound from a combination of the 55-, 100- and 200-hour SMAs as well as the weekly PP at 1.3415 just as expected.
Even though traders are mainly focused on the upcoming decision on interest rate hike, there is also a need to take into account an effect from release of information on the UK inflation. In case of match with expectations, the Pound might temporarily jump back to the above resistance barrier.
In the opposite case, bears are likely to push it down to the 1.3300 mark. So, depending on the released data, the currency rate might start tomorrow's trading day either near the monthly PP at 1.3372 or the weekly S1 at 1.3290.
Hourly chart
GBP/USD was driven by both bulls and bears on Monday. The latter managed to take the upper hand and thus send the pair for a 42-pip fall. It breached the monthly PP, but nevertheless failed to reach the weekly S1 at 1.3291.
The Sterling started Tuesday with low volatility. However, it is likely that the same bearish momentum prevails in this session, as well. The nearest support is the aforementioned weekly S1, while resistance is set by the monthly PP at 1.3372.
Market sentiment is mixed
The SWFX market sentiment stands at equilibrium, thus losing one percentage point from its bullish sentiment on Monday. Meanwhile, 52% of pending orders are still to buy the Pound (-2%).
OANDA traders remain bearish, as 51% of open positions are short (-2%). Saxo Bank clients, however, are more bearish on the pair with 59% short positions (-1%).