Pound Jumps on Soft US Services PMI
GBP/USD has posted strong gains on Wednesday. In the North American session, the pair is trading at 1.2405, up 0.81% on the day. The pound took advantage of a soft Non-Manufacturing PMI in the United States. The September release dropped to 52.6, compared to 56.4 a month earlier. The reading also missed the estimate, indicating that the services sector slowed down more quickly than expected. The services sector also disappointed in the U.K., as the PMI dropped to 49.5 in September, down from 50.6 a month earlier. This points to a contraction in the services industry, for the first time since March.
After a lackluster week, GBP/USD exhibited a sustained upward drive on Thursday. The pair has broken above resistance at 1.2320 and 1.2360. On the upside, there is resistance at 1.2460. The main trend is up, so this resistance line could face pressure before the week is over.
USD/CAD has steadied on Thursday, after sharp gains on Wednesday. In North American trade, the pair is trading at 1.3320, down 0.07% on the day.
Soft U.S Services PMI Drags Down Loonie
There was disappointing news out of the services industry, as the September Non-Manufacturing PMI dropped to 52.6, compared to 56.4 a month earlier. The reading missed the estimate of 52.6, indicating that the services sector slowed down more quickly than expected.
After strong gains on Wednesday, USD/CAD continues to hover close to 1.3320 and this line could remain relevant for the rest of the week. Currently, this is a weak support line. On the upside, there is resistance at 1.3360.
USD/MXN has recorded losses on Thursday. In the North American session, the pair is trading at 19.70, down 0.47% on the day.
USD/MXN closed above resistance at 19.70 on Monday and pushed higher. However, the pair was unable to consolidate these gains and has retracted to this line on Thursday. Above, there is resistance at 19.90, which is protecting the symbolic 20.00 level. The pair managed to touch a high of 19.83 on Wednesday, putting pressure on the 19.90 line.
On the downside, there is support at 19.20, which has held since August 1.
This article was originally posted on FX Empire
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