U.K. PMIs Boosted The Pound Sterling
InstaForex Group | Jul 06, 2021 07:16AM ET
However, a rise came with a delay. The British currency grew sharply only at the beginning of the Asian session. The US market was closed yesterday in honor of Independence Day. All in all, business activity indices fell less than expected. In particular, the UK services PMI dropped to 62.4 from 62.9 in May. The reading was forecast to slip to 61.7. Meanwhile, the composite PMI fell to 62.2 from a preliminary estimate of 61.7 and compared with May's 62.9. Thus, the figures have been revised higher as a sharper drop was included into the preliminary estimates by market participants.h2 United Kingdom Composite PMI:
Similar reports will be published today in the United States. Based on the current forecast, the pound sterling should at least consolidate at the levels it has already achieved. There is a likelihood that the currency will extend gains. Anyway, the US services PMI is expected to drop to 64.8 from 70.4, while the composite index is projected to fall to 63.9 versus 68.7, preliminary estimates showed. Importantly, business activity data came out better than the flash results not only in the United Kingdom but also in the eurozone. If the same scenario plays out in the United States, the greenback will strengthen.
h2 United States Composite PMI:Yesterday, a corrective move of GBP/USD took place to the pivot point of 1.3730.
A market dynamic is 45 points, which is 50% lower than the average daily level. At the same time, an increase in speculation is observed, signaling a possibility of a bullish market.
As for the current location of the quote, we can see buying interest at the very opening of the daily candlestick.
We can assume that if the price consolidates above 1.3900, the pair is likely to fully recover relative to its downward trend last week.
In terms of complex indicator analysis, we can see that technical indicators are giving a buy signal on the H1 and M1 charts owing to a corrective move in the market.
InstaForex Group
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.