Weaker recoveries were seen in both the UK manufacturing and service sectors, with the latter recording the greatest loss of momentum since July.
GBP/USD: outlook for August 25 - September 1
2019-11-11 • Updated
GBP/USD made another break to the downside. It fell below the 100-day MA (1.2875) and 1.2850 and hit a near-two-month low.
The outlook for the British pound is still clouded by concerns about Brexit risk and economic fundamentals. Data showed revised quarterly growth of 0.3% in the second quarter, while household spending remained weak.
The British government is trying to move forward formal Brexit discussions. There was a series of position papers outlining potential compromises over key issues. However, the nation’s future still remains very uncertain.
The UK economic calendar will be light. Monday is a summer bank holiday, so trading volumes will decrease. The most important release – manufacturing PMI – will come out on Friday.
Technical picture continues to look bearish. The next Fibonacci level of June-August advance is at 1.2735. Below it, support will be at 1.2650 (200-day MA). Pullbacks to the upside will meet resistance at 1.2850 and 1.2930 ahead of 1.3000.
What will happen? The Bank of England will present a monetary policy statement on Thursday, August 4 at 14:00 MT (GMT+3)…
The British pound has advanced in the first half of the year, especially against the euro. Will this trend sustain in the second part of 2021?
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.