Online Forex broker
2019-11-11 • Updated
The British pound dropped in the past week on UK election jitters and weak economic fundamentals. Monday’s terrorist attack in Manchester city rattled people’s confidence in the government and shrank May’s lead in the polls. British GDP for the first quarter was revised downwards to 0.2% from 0.3% back in April. UK consumer spending, the key economic growth engine, had its worst quarter since 2014. It seems that Brexit has finally started taking its toll on the British economy.
With only two weeks before the legislative elections, the pound should remain under pressure in the near-term. Next week, investors will be watching for the British manufacturing and construction PMI. If economic data continues posting weak gains, the pound will be set to test lower levels. At the beginning of the week, the US dollar will be a bellwether of the pair with the CB consumer confidence coming on Tuesday, Wednesday’s Chicago PMI followed by the US pending home sales. Thursday will be marked with ADP report, unemployment claims, and manufacturing figures. On Friday, traders will be focused on the US labor market report. Strong readings will bring hopes for an additional rate hike at the Fed’s June meeting.
The technical outlook for the GBP/USD is bearish. The pair broke the support border of the short-term upward trading channel. This was a signal of potential reversal or correction. The British pound may slide towards the nearest supports at 1.2825, 1.2750 and 1.2596. To restore the uptrend, the bulls need to break the 1.30 psychologically important round level.
Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.
After multiple hawkish remarks over the past few days from non-voters members, the Federal Reserve chairman Powell surprised the markets with some dovish remarks…
Institutional investors speak about further growth in the stock market. In the exact market that has doubled since COVID-19 and doesn’t plan to stop. Is it possible?
What will happen? Amazon announced the company is going to make a 1 – 20 stock split on June 3 after the trading session close (23:30 GMT+3)…
How to understand if an economy is accelerating or decelerating? What are the indicators that can guide us in this interpretation? One of the ways in which we can assess this situation is precisely the household consumption, which fundamentally refers to…
Credit cycles (or leverage cycles) represent moments in the economy of a country when families and companies get indebted, in order to invest or to spend in different segments, which ends up positively influencing the level of the general economic…
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
|
