The weakened in an initial response to the miss last Friday. While a strong US job report was expected, the job growth in September turned out to be the slowest this year.
With only 194,000 jobs added last month, the unemployment fell to 4.8 percent, and rising wage growth prevented the greenback from a steeper decline.
However, the lower can be attributed to the decline in the size of the overall labor force. showed the most substantial advance since April, highlighting companies’ attempts to attract workers by offering higher wages.
Despite the weird labor market picture that simultaneously shows signs of weakness and overheating, the Federal Reserve is expected to tap into bond purchases.
The British stabilized above 1.36 as the likelihood of a December rate hike by the Bank of England increases. Latest remarks from Bank of England (BoE) officials suggest that the market should brace for a “significantly earlier” rate increase than previously thought to curb inflation.
: If the cable climbs again above 1.3660, we pencil in higher price targets at 1.3750 and 1.38. On the downside, we would wait for a renewed fall below 1.3540 to expect a test of 1.34.
: Chances could shift in favor of the bulls, provided the 1.16-hurdle can be taken out. A sustained break above 1.16 would shift our focus to a higher target at 1.1670, followed by 1.1750. However, if 1.16 remains a resistance, we see a lower support zone between 1.1430-1.14.
This week, all eyes will be on the September US print on Wednesday. Elevated price pressures may underline that Fed tapering is just around the corner.
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