FXEMPIRE
All

GBP/USD – Pound Flirting with 1.30, Services PMI Next

The British pound is hovering around the 1.33 line on Wednesday. We could some movement from GBP/USD in the North American session, with key services and employment reports out of the U.S. The Australian dollar is lower after GDP missed the forecast.
Kenny Fisher
GBP/USD daily chart, December 03, 2019

GBP/USD has punched above the 1.3000 line on Wednesday, after posting considerable gains on Tuesday. In European trade, GBP/USD is trading at 1.2995, up 0.01% on the day.  The pound had a good day on Tuesday, posting its best one-day gain since mid-October.

PMIs Point to Contraction in UK Economy

PMI reports are important gauges of the health of key sectors in the economy. The week started with data from the manufacturing and construction industries. Although both the Manufacturing PMI and Construction PMI  managed to beat their forecasts in November, both remain mired below the 50-level, which points to contraction. Neither PMI has shown an expansion reading (above the 50-level) since April, which is indicative of a struggling British economy. No relief is expected from Services PMI, which will be released later on Wednesday. The index managed to touch 50.00 in October, but is expected to dip to 48.6 in the upcoming release.  A lower reading than expected could send the pound to lower ground.

Ahead – U.S. PMI, ADP Nonfarm Payrolls

We could see some movement from GBP/USD in the North American session, with two key events out of the United States. The ISM Non-Manufacturing PMI came in at 54.7 in October, and little change is forecast for November, with an estimate of 54.5. This points to respectable expansion in the services sector. Later, this week’s key employment releases kick off with ADP Nonfarm Payrolls, which is expected to climb to 137 thousand, up from 125 thousand a month earlier.

Technical Analysis

GBP/USD is currently trading just above the 1.3000 level, which has psychological significance. The pair can put some more distance above this line, it has room to move deep into 1.33 territory. On the downside, 1.2925 is providing support.

GBP/USD 1-Day Chart

Pacific Currencies – Summary

USD/CNY

USD/CNY continues to move higher this week. Currently, the pair is trading at 7.0694, up 0.12%. The pair is at its highest level since October 23, as the yuan is showing signs of weakness against the U.S. dollar. The yuan dropped on Tuesday, despite a strong reading from Caixin Services PMI. The index rose to 53.3 in November, its highest level since April.

AUD/USD

AUD/USD is trading at 0.6820, down 0.43% on the day. The pair coughed up Tuesday’s gains after GDP for the third quarter dipped to 0.4%, down from 0.5% in Q2. This figure was shy of the forecast of 0.5%. On Thursday, Australia releases retail sales and trade balance.

NZD/USD

NZD/USD has posted small losses on Wednesday. Currently, the pair is trading at 0.6508, down 0.16% on the day. The pair failed to take advantage of an excellent reading from ANZ Commodity Prices, which jumped 4.3%. This marked its best gain since September 2016.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US