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GBP/USD – Pound Under Pressure Ahead of GDP

The British pound has been losing ground and is desperately trying to stay above the key 1.30 level. Investors are braced for soft readings from GDP and Manufacturing Production (both at 9:30 GMT), so it could be a sour start to the week for the pound.
Kenny Fisher
GBP/USD Price Forecast - British Pound Continues To Consolidate

GBP/USD has started the week with slight losses. Currently, the pair is trading at 1.3008, down 0.27% on the day.

Soft GDP, Mfg. Production Expected

Investors are braced for soft British numbers on Monday. The monthly GDP release is projected to remain at zero in November, pointing to stagnation in the U.K. economy. Another key indicator, Manufacturing Production, is expected to decline by 0.3%, which would be the third decline in four months.

U.S. Job Data Slips, but Pound Yawns

Following a very strong ADP nonfarm payrolls report, investors were hopeful that the official nonfarm payrolls reports, would follow suit on Friday. However, nonfarm payrolls fell sharply to just 145 thousand, compared to 266 thousand a month earlier. This missed the estimate of 162 thousand. Wage growth slipped from 0.3% to 0.1% and fell shy of the forecast of 0.1%. The unemployment rate was unchanged at 3.5%. Despite the weak job numbers, the pound failed to take advantage on Friday, as GBP/USD is under pressure and could fall below the symbolic 1.30 line as early as Monday.

Technical Analysis

The pound remains under pressure, as the downturn continues from last week. The 1.30 line remains fluid – currently, it is under strong pressure in support. Below, there is support at 1.2950. On the upside, there is resistance at 1.3050, followed by resistance at 1.3150.

 

Pacific Currencies – Daily Summary

USD/CNY

Yuan at 28-Week High

USD/CNY continues to lose ground. The pair broke below the 6.90 level in the Asian session, for the first time since July 22. Currently, the pair is trading at 6.8975, down 0.28% on the day. There are no Chinese events on the schedule. On Tuesday, China releases trade balance and new loans.

AUD/USD

AUD/USD ended the week with considerable gains and continues to move upwards. The pair is currently trading at 0.6913, up 0.20% on the day. In economic news, the Melbourne Institute Inflation Gauge rose 0.3%, its strongest gain in five months.

NZD/USD

NZD/USD has started the week with slight gains. The pair is trading at 0.6646, up 0.17% on the day. Later on Monday, New Zealand releases NZIER Business Confidence, which has been mired deep in negative territory. The Q3 reading fell to -40 pts, indicating deep pessimism about the economy in the business sector.

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