10 Jan 2014
GBP/USD looking to UK industrial data before focus on non-farm payrolls
FXstreet.com (London) - GBP/USD will see some moves on this morning’s industrial production data, but the pair will largely be dominated by US non-farm payroll expectations
Today’s UK industrial production data is expected to show a 0.4 percent gain month-on-month, matching October growth. Momentum may see industrial production shift to the downside of expectations, but remain in expansionary territory for the quarter. Recent PMI numbers suggest a continuation of growth into the first quarter of 2014.
Following the 9:30GMT industrial production data, focus for the GBP/USD pair will be fixed on the US non-farm payroll print. Strong ADP numbers earlier in the week suggest that we will see a continuation of upwards momentum, with a print in the 200k-area again – with unemployment stable at 7 percent.
Fed tapering
Continuing job growth momentum will be seen as supporting the Fed’s QE tapering programme in the Fed’s dual mandate of employment and inflation. Janet Yellen is set to take over as Fed chairman on 31 January when she is expected to continue with a monthly tapering of the Fed’s current USD75bn a month asset purchase programme.
GBP/USD is currently trading at USD1.6465, down o.05 percent after a fall from USD1.6482.
Today’s UK industrial production data is expected to show a 0.4 percent gain month-on-month, matching October growth. Momentum may see industrial production shift to the downside of expectations, but remain in expansionary territory for the quarter. Recent PMI numbers suggest a continuation of growth into the first quarter of 2014.
Following the 9:30GMT industrial production data, focus for the GBP/USD pair will be fixed on the US non-farm payroll print. Strong ADP numbers earlier in the week suggest that we will see a continuation of upwards momentum, with a print in the 200k-area again – with unemployment stable at 7 percent.
Fed tapering
Continuing job growth momentum will be seen as supporting the Fed’s QE tapering programme in the Fed’s dual mandate of employment and inflation. Janet Yellen is set to take over as Fed chairman on 31 January when she is expected to continue with a monthly tapering of the Fed’s current USD75bn a month asset purchase programme.
GBP/USD is currently trading at USD1.6465, down o.05 percent after a fall from USD1.6482.