US private sector created 208,000 jobs in November, against market expectations, but remained firmly above the 200,000 threshold for the sixth straight month. Analysts had projected a gain of 221,000 jobs. However, October's private payrolls were revised upwards to show a 233,000 gain from the previously reported 230,000. The ADP data comes ahead of the US Labor Department's non-farm employment change report on Friday, which includes both public and private sector employment and is expected to show 231,000 new jobs were added in the labour market, with the unemployment rate remaining at 5.8%.
Meanwhile, Britain's services sector, the engine of the UK economy as it accounts for 78% of the nation's GDP, expanded at a faster than expected pace in November, alleviating concerns of slowing
economic recovery in the UK. Markit/CIPS services PMI rose to 58.6, compared with the previous month's reading of 56.2 points. Markit's reports published earlier this week also showed activity in
the UK manufacturing sector rose to the highest level in four months of 53.5 in November, compared to an upwardly revised indicator of 53.3 in October, and remained in expansion area for the 21st straight month.
BoE's rate statement and US unemployment claims anticipated
The market participants are waiting for the the Bank of England's rate statement; however, most likely it will not bring big changes in the market since most likely it will remain unchanged. At the mean time, also the US unemployment changes will be released and they probably will get bigger attention than usually since US non-farm payrolls are released tomorrow.GBP/USD tests upper trend-line
Already for more than a month GBP/USD is testing the strength of the down-trend, especially its upper trend-line, that started to take its shape at July, when the pair reached a six-year high at 1.7193. The pair's trading range is becoming narrower and that could potentially provoke a break-out. Since the Pound has reached this year's low just recently, we expect a bullish break-out to be the case; however, there still is a downside risk of the pair falling lower, if it fails to breach the monthly S1 at 1.5833.Daily chart
The GBP/USD cross did not change dramatically in value yesterday; however, it has slipped below the weekly PP at 1.5697. That might be a signal that the pair is not ready to breach the 1.57 level and that it is poised for a further decline. Moreover, there is no substantial support levels on what the pair could rely on, thus the downside risks are increasing.
Hourly chart