GBP/USD: Pair Declining Amid Poor UK Construction PMI
LiteForex Europe | May 06, 2016 05:46AM ET
Yesterday the GBP/USD pair was declining amid poor statistics on the UK Construction PMI, which fell to 52.0 points against the forecast of 54.0 points. The US dollar gained certain support from data on Trade Balance – the US trade deficit shrank to $40.0 billion. Favorable statistics on Services PMI in the US also contributed to negative dynamics in the pair. Both the ISM and Market indexes grew to 55.7 and 52.8 points respectively.
Today Markit Services PMI in the UK came in at 52.3 points, below the forecast of 53.5 points. A fall in the index can have a negative impact on the national currency. Data on Initial Jobless Claims, due in the US today, is also worth noting. The number of claims is expected to be up from 257K to 260K that suggests weakness of the US labour market and is considered a negative factor for the US dollar. If the indicator comes in substantially above the expected values, the pair might resume its growth.
Support levels: 1.4470, 1.4425, 1.4380, 1.4340, 1.4300, 1.4270, 1.4220, 1.4150, 1.4115.
Resistance levels: 1.4530, 1.4575, 1.4620, 1.4700, 1.4740, 1.4770.
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