20 October 2016, 17:05  GBP/USD pair extends its reversal

The GBP/USD pair extended its reversal from Wednesday's 6-day high level and dropped to a fresh session low level during early NA trading session. Currently trading around 1.2230-35 band, few pips off session through level of 1.2216, the pair came under renewed selling pressure amid broad based US Dollar strength primarily led by a sharp reversal in the EUR/USD major after ECB President Mario Draghi failed to provide any clues over the central bank’s future plans and disappointing market players. On the US economic data front, the Philly Fed Manufacturing Index retraced to 9.7 in October from September's 12.8, albeit was better-than 5.3 expected. Meanwhile, weekly jobless claims rose to 260K as against 250K expected and previous week's 247K. Mixed US economic data extended some support to the pair, which extended its offered tone following the disappointing release of UK monthly retail sales data for September.

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