MarketPulse | Apr 04, 2017 09:25AM ET
GBP/USD has posted losses in the Tuesday session. In the North American trade, GBP/USD is trading at 1.2430. On the release front, British Construction PMI dipped to 52.2, missing the estimate of 52.5 points. In the US, the trade deficit narrowed to $43.6 billion, better than the forecast of $46.0 billion. On Wednesday, all eyes will be on the Federal Reserve, which will publish the minutes of its March policy meeting. As well, the US will release ADP Employment Change and ISM Non-Manufacturing PMI. The UK will release Services PMI.
Britain has entered a new phase in the Brexit saga, as Prime Minister Theresa May gave formal notice its intent to leave the EU last week. The negotiations over the breakup are supposed to be conducted over a two-year period, and are likely to be difficult. The EU has no intention of giving Britain a better deal than it had within the club, and wants the first item of business to be “exit bill” for Britain’s share of debts, pensions and other payments, which could run as high as EUR 60 billion. The British government will be under pressure to show the British public that it has reached a good deal, and has threatened to leave the EU without a deal if the EU is intransigent in the negotiations. That scenario, labeled “hard Brexit”, would likely take a toll on the British economy and could send the pound downward. Negotiations are unlikely to commence for several months, but we’re likely to have plenty of tough talk between the parties in the meantime, which could create volatility for the struggling pound.
GBP/USD Fundamentals
Tuesday (April 4)
Upcoming Key Events
Wednesday (April 5)
*All release times are GMT
*Key events are in bold
GBP/USD for Tuesday, April 4, 2017
GBP/USD April 4 at 9:15 EST
Open: 1.2489 High: 1.2495 Low: 1.2415 Close: 1.2443
GBP/USD Technical
S1 | S2 | S1 | R1 | R2 | R3 |
1.2154 | 1.2272 | 1.2351 | 1.2471 | 1.2571 | 1.2706 |
Further levels in both directions:
OANDA’s Open Positions Ratio
GBP/USD ratio is showing little movement at the start of the week. Currently, short positions have a slim majority (52%), indicative of slight trader bias towards GBP/USD continuing to lose ground.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.