The pound traded near session lows against the dollar on Thursday after data revealed the U.S. service sector was far busier in August than markets were expecting. Also payroll processor ADP reported that its Non-farm payrolls report showed that the private sector added 204,000 jobs in August, missing expectations for jobs growth of 220,000. At the same time data showed that the U.S. trade deficit narrowed to the lowest in six months in July.
Meanwhile in the U.K., the Bank of England voted to keep interest rates on hold at 0.5% and to keep the size of its asset purchase program unchanged at £375 billion.The minutes of the meeting, due to be published in two weeks, would indicate how many monetary policy committee members voted in favor of a rate hike. The MPC was split last month, with two members voting in favor of a rate increase and two against.The pound remained under pressure from concerns that support for Scottish independence is gaining momentum ahead of a referendum due to take place on Sept. 18.
Intraday bias remains on the downside as 21 and 55 EMA trend indicators are crossed downward signalling the continuation of the bearish trend. SSRC, Stochastic, RSI and MACD Oscillator indicators are showing bearish momentum is still intact, so am expecting further decline to 1.62471 support/ demand zone. However, due to the Non Farm Pay Employment Change scheduled to be released later in the afternoon, i recommend caution should be applied.