“¢ The British Pound remains supported by optimism over cross-party Brexit talks.
“¢ Upbeat ADP report does little to impress the USD bulls or prompt any selling.
“¢ Traders now eye US ISM PMI but the key focus remains on the FOMC decision.
The GBP/USD pair maintained its strong bid tone near two-week tops and had a rather muted reaction to the US private sector employment details – ADP report.
The pair added to overnight strong gains and continued gaining positive traction for the fourth consecutive session on Wednesday, supported by the fact that the UK PM Theresa May is targeting to conclude cross-party Brexit talks by mid next week.
The positive momentum seemed unaffected by a sharp downturn in the UK manufacturing activity – as depicted by the latest PMI, which fell from March’s 13-month high of 55.1 to a two-month low level of 53.1 in April, rather took cues from persistent US Dollar weakness.
Meanwhile, the USD failed to gain any respite from upbeat ADP report, showing that the US private sector employers added 275K new jobs during the month of April as compared to 180K expected and much better than previous month’s dismal reading of 129K.
Today’s US economic docket also features the release of ISM manufacturing PMI but seems more likely to be overshadowed by the key event risk – the latest FOMC monetary policy decision, due to be announced later during the US trading session.
Technical levels to watch
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