GBP/USD – Pound in Holding Pattern Ahead of British GDP, Manufacturing ProductionThe pound is calm on Tuesday. This lack of movement could change in a hurry, as the U.K. releases GDP and Manufacturing Production at 9:30 GMT.
GBP/USD is showing little movement for a fifth straight day. Currently, the pair is trading at 1.3155, up 0.07% on the day.
All Eyes on British GDP, Mfg. Production
Investors are keeping a close eye on the monthly GDP report. The economy has contracted by 0.1% over the past two months, but analysts are expecting an improvement in September, with a forecast of +0.1%. The U.K. will also release Manufacturing Production, which has posted two consecutive declines. The estimate for September stands at 0.1%. Despite disappointing PMI releases for November, but the British pound gained 1.6% last week, in anticipation of a Conservative victory in the election on Thursday. However, a minority government or a Labour win would disappoint the markets and likely send the pound to lower ground.
GBP/USD has been range-bound since last week, and is showing little inclination to test immediate support or resistance lines. On the upside, the pair is within striking distance of 1.3200. This resistance line has held since late March, so it would be a significant development for the pair if this line is breached. The round number of 1.31 is providing support.
Pacific Currencies – Summary
USD/CNY is showing little movement this week. The pair is currently at 7.0371, down 0.06% on the day. There was positive news on the inflation front, as Chinese CPI jumped to 4.5%, up from 3.8% a month earlier. This marked the highest gain since 2012.
AUD/USD is flat in European trade following mixed Australian releases. The House Price Index gained 2.4% in Q3, ending a nasty streak of six consecutive declines. However, NAB Business Confidence fell to zero in November, down from 2 pts a month earlier.
NZD/USD has reversed directions on Tuesday and posted slight gains. Currently, the pair is trading at 0.6556, up 0.15% on the day. There are on New Zealand events on the schedule, so it will likely remain a quiet day for the pair.