Pound Trading Lower Ahead Of The UK GDP Data
GCI Financial | Oct 24, 2014 02:34AM ET
For the 24 hours to 23:00 GMT, the GBP fell 0.07% against the USD and closed at 1.6035, after retail sales in the UK eased 0.3% on a monthly basis in September, higher than market expectations for a flat reading and compared to a rise of 0.3% registered in the prior month, thus dampening optimism over the country’s economic outlook. Additionally, the CBI business optimism in the nation deteriorated to a reading of 8.0 in October, lower than market forecast for a level of 15.0 and after registering a reading of 19.0 in September. Also, the BBA mortgage approvals registered an unexpected drop to 39.27 K, following a revised reading of 41.36 recorded in the previous month. Markets were expecting it to rise to 41.45 K in September.
Separately, the BoE’s Deputy Governor, Ben Broadbent stated that the interest rates in the UK was likely to stay low for an extended period of time and according to him the central bank would raise it gradually. He further indicated that the current low inflation and risk adjusted returns on investments would probably rise as productivity improved.
In the Asian session, at GMT0300, the pair is trading at 1.6029, with the GBP trading a tad lower from yesterday’s close.
The pair is expected to find support at 1.5995, and a fall through could take it to the next support level of 1.5960. The pair is expected to find its first resistance at 1.6063, and a rise through could take it to the next resistance level of 1.6096.
Trading trends in the Pound today would be determined by the UK’s crucial GDP data, scheduled in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
Get The News You Want
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.