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Wednesday, May 02, 2007

GBP/USD: Lent Support by Disappointing ADP Jobs Report Number

Cable has elicited support from the disappointing US ADP employment report number. This came in at 64k, against the 100k forecast. Sterling revisited Monday's pre-1.9890 lows at the NY open, after tripping stops below 1.9900. 1.9870/80 is a touted support window south of 1.9890.

Prop points below include 1.9850, 1.9830 (Apr 16 base) and 1.9800. A 1.9850 option strike rolls off at today's 10am Eastern NY cut (14:00GMT/3pm BST). GBP/USD resistance levels include 1.9939 (today's Asian session base), 1.9970 and 1.9991 (today's Asian session top).

US March factory orders will be revealed at 14:00GMT. Forecast: +2.0% m/m. US Treasury Secretary Paulson is slated to speak at 15:00GMT. BoE Governor King is due to address the Society of Business Economists at 17:30GMT. The next BoE MPC meeting is next week (May 9/10).

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