Pound Trading Tad Higher Ahead Of The UK Inflation Report Hearing
GCI Financial | Mar 05, 2014 05:04AM ET
For the 24 hours to 23:00 GMT, GBP traded flat against the USD and closed at 1.6665, as a soft UK construction PMI data overshadowed optimism on easing Ukraine tensions. The UK construction PMI declined to a reading of 62.6 in February, more than market expectations for a fall to a level of 63.0, from previous month’s level of 64.6.
In the Asian session, at GMT0400, the pair is trading at 1.6667, with the GBP trading marginally higher from yesterday’s close. Early morning, the BRC reported that its shop price index in the UK fell 1.4% (YoY) in February, the deepest level of deflation on record, compared to previous month’s level of -1.0%.
The pair is expected to find support at 1.6639, and a fall through could take it to the next support level of 1.6610. The pair is expected to find its first resistance at 1.6707, and a rise through could take it to the next resistance level of 1.6746.
Traders are expected to keep a close tab on UK’s inflation hearing report and Markit service PMI data, slated for release later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
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