The GBPUSD has moved back to the upside helped by a much weaker ISM nonmanufacturing index. The move higher has taken the price of the GBPUSD, through the 38.2% and the earlier session high at 1.19346.
The run to the upside has also seen the 100 hour MA tested and now broken at 1.19914. There is a swing area between 1.19913 and 1.20102 and above that, the following 200 hour moving average at 1.20107. The 200 day moving averages at 1.20216. All levels would need to be broken and stay broken to increase the bullish bias.
The ISM nonmanufacturing Index fell below the 50 level at 49.6. The expectations was 55.0. Last month the index came in at 56.5. The US dollar has moved sharply lower as a result. Yields of also tumbled with the two year yield now down -14.3 basis points at 4.307%. The 10 year yield is down -10.3 basis points to 3.619%
US stocks have reacted positively with the Dow Industrial Average now of 352 points or 1.08%. The NASDAQ index is up 82.20.8 percent and the S&P is up 39 points or 1.04%.
Meanwhile Feds Bostic has reiterated that he expects rates to remain steady until “well into 2024”. That is the 2nd fed official to use those exact words (Esther George said the same yesterday).