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GBP/USD extends gains as dollar falls on weaker than expected US ADP payrolls

The September US ADP payroll report has just been released and it had an impact across the markets. As noted in the previous update, the markets were expecting a modest increase in ADP payrolls of around 150k, compared to the August gain of 177k. The actual data revealed a rise of just 89k. The dollar has fallen back immediately upon hearing this news. The EUR/USD has lifted to fresh session highs above 1.0520 and the GBP/USD is taking full advantage of this news too, rising just now to above 1.2150, further extending the gains seen earlier. After the US stock markets reopen at 1.30pm GMT, the market will then focus on the September non-manufacturing ISM (Institute of Supply Management) index. This is forecast to come in a little lower than the August reading of 54.5. The markets expect something closer to 53.5 this time. However, there are some very important components to this index, namely the priced paid index, new orders and employment, all of which can have a significant impact on how the markets react to the data overall.  The GBP/USD is currently trading at 1.2153

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