FXEMPIRE
All

GBP/USD – Pound Steady, Investors Eye Housing Reports

The British pound is steady at the start of the week. The Australian and New Zealand dollars are trading at multi-week lows, as the China coronavirus has raised investor risk apprehension.
Kenny Fisher
Silvanute

GBP/USD is trading sideways on Monday. Currently, the pair is trading at 1.3082, up 0.14% on the day. The pound managed to post slight gains over the week, its first winning week of the year. On the economic front, we’ll get a look at mortgage approvals by major British banks and the Nationwide House Price Index, both of which are expected to accelerate.

Manufacturing PMI Points to Contraction

The week wrapped up with the release of initial PMIs for January. The manufacturing PMI improved to 49.8, compared to 47.5 in the final December PMI. Still, this points to contraction in the manufacturing sector, which continues to struggle. The services PMI indicated expansion, with a reading of 52.9 points. This was up nicely from the final PMI in December of 50.0 points. As well, this figure beat the forecast of 51.1 points.

The Bank of England will be carefully monitoring these key releases. Bank policymakers have been hinting at a rate cut when they meet to set the benchmark rate Thursday and the weak state of the manufacturing sector remains a concern.

Technical Analysis

GBP/USD is range-bound on Monday. The line of 1.3100 remains relevant and is currently an immediate resistance line. This is followed by resistance at 1.3150. On the downside, there is major support at the round number of 1.3000.

GBP/USD 1-Day Chart

Pacific Currencies – Daily Summary

USD/CNY

USD/CNY declined 1.1% last week, its sharpest one-week loss since August. This was mainly a result of the China coronavirus, which has badly shaken sentiment towards the yuan. Currently, the pair is trading at 6.9363, up 0.02% on the day. Later in the day, China releases the CB Leading Index.

AUD/USD – Aussie Falls to 7-Week Low

AUD/USD ended the week with losses and has continued its losing ways on Monday.  The pair is currently trading at 0.6794, down 0.46% on the day. AUD/USD broke below the 0.68 line in the Asian session, for the first time since December 2. The currency remains under pressure due to the China coronavirus, which has sapped risk appetite. Later in the day, Australia releases NAB Business Confidence.

NZD/USD

NZD/USD has started the trading week with considerable losses. Currently, the pair is trading at 0.6572, down 0.53% on the day. In the Asian session, the pair touched a low of 0.6569, marking a 3-week low. There are no New Zealand events on the calendar.

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