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GBP/USD hovers around $1.51
The pound has managed to stem its losses versus the dollar in the overnight session, and the downward trend has begun to plateau. I would imagine that trading volumes and market volatility will remain low as we approach the jobs report.
The UK manufacturing production report will be announced at 9.30am (London time), and the consensus is for an increase of 0.4% in November. The October survey showed a contraction of 0.7%. The British manufacturing sector accounts for a much smaller portion of the economy than the services sector, but it could trigger some interest for traders.
As Brenda Kelly stated, dealers are expecting a reading of 240,000 from the non-farm payrolls, and for the unemployment rate to drop to 5.7%. Signs that the US recovery is continuing will drive the greenback higher.
GBP/USD is encountering resistance at the 50-hour moving average of $1.5094, and a move through this will put $1.52 in traders’ minds. The downside bias is still in place and $1.50 is on the bears' radar.