Due to positive index of business activity in the service sector (PMI) in the UK, the pair GBP/USD has grown up to the 3-week highs at the level of 1.4461.
PMI, published by Chartered Institute of Purchasing and Supply and Markit Economics, was higher than in December (55.6 against 55.5).
Today, the Pound was supported by cross pair EUR/GBP.

However, the most important information, which can affect the Pound, will be known tomorrow; at 14:00 (GMT+2) the Bank of England will release its interest rate decision. Later, at 14:45 (GMT+2) Mark Carney, the head of the Bank of England will give his comments.

Changes in the interest rate are not expected; however, Mark Carney has practice of reversing the markets and market participants will closely follow his speech. Last week Mark Carney said that there were no conditions for increasing interest rate.
Later today, at 16:45 (GMT+2) US PMI will become known. The index is likely to remain unchanged (53.7 in January versus 53.7 in December). ADP data on employment will be the more important information.

This data will be released at 15:15 GMT+2, and will show changes in the number of employed people in the USA in January. According to the forecast the number will grow up to 195.000 against 257 000 in December. This index has a strong impact on the movement in the pairs with the USD, as it may indicate expectations associated with Non-Farm PayRolls. The data will be released on Friday.

If today’s US statistics are below the forecast, the USD can weaken all over the market, as well as in the pair GBP/USD.
However, such factors as slumping prices of oil and commodities, (leading to slowdown of inflation in the UK), the forthcoming referendum on the remain of the UK in Eurozone and the different between monetary policies of the US Fed and the Bank of England will continue to put pressure on the pair GBP/USD, which is currently in the deep downward trend.

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

Follow us in social networks!
Live Chat
Leave feedback