MarketPulse | Mar 01, 2019 01:08AM ET
GBP/USD paused on Thursday, after recording gains throughout the week. In the North American session, the pair is trading at 1.3296, down 0.10% on the day. In economic news, there are no major British events.
In the U.S., Advance GDP expanded 2.6% in the fourth quarter, above the estimate of 2.2%. Chicago PMI climbed to 64.7, easily beating the forecast of 57.3 points. Unemployment claims rose to 225 thousand, above the estimate of 221 thousand. On Friday, the U.S. will release Core PCE Price Index and UoM Consumer Sentiment. On Friday, the U.K. releases Manufacturing PMI and Net Lending to Individuals.
With the clock ticking down towards Brexit Day on March 29, there is a flurry of activity in Westminster. Earlier in the week, Prime Minister May made headlines when she announced another vote on the government’s withdrawal agreement, which is scheduled for March 12. If lawmakers reject that proposal, they will vote the next day on two separate proposals – one on a no-deal Brexit, and the second on requesting the EU to extend Article 50 and delay Brexit past March 29.
Investors are confident that this makes a no-deal scenario even more unlikely, which has resulted in gains of 2.0% for the pound this week. However, with plenty of turmoil and uncertainty around the Brexit withdrawal, we could see volatility from the pound in the days leading to the parliamentary votes.
The Federal Reserve’s new dovish stance was reinforced by Fed Chair Powell’s testimony on Capitol Hill on Tuesday and Wednesday. Powell preached patience with regard to changes in interest rate levels. The Fed chair stated that the Fed was in “no rush to make a judgment” and made reference to “conflicting signals in the economy”.
The labor picture remains bright, with strong hiring and low unemployment. At the same time, consumer spending and business investment have been soft. Powell was optimistic about the U.S. economy, but said that the lower global growth and uncertainty over trade was weighing on the economy. The markets are expecting the Fed to remain on the sidelines in May and June, meaning that the first hike of 2019 may be on hold until the second half of the year.
GBP/USD Fundamentals
Thursday (February 28)
Friday (March 1)
*All release times are EST
*Key events are in bold
GBP/USD for Thursday, February 28, 2019
GBP/USD February 28 at 10:55 EST
Open: 1.3309 High: 1.3320 Low: 1.3264 Close: 1.3296
GBP/USD Technical
S1 | S2 | S1 | R1 | R2 | R3 |
1.3070 | 1.3170 | 1.3258 | 1.3362 | 1.3460 | 1.3550 |
GBP/USD was flat in the Asian session. The pair posted showed limited movement in the European session and is flat in North American trade
Further levels in both directions:
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.