Breaking News

Pound Rises To 4-Week High As Korean Crisis Weighs On USD

By Kenny FisherForexSep 07, 2017 01:59AM ET
Pound Rises To 4-Week High As Korean Crisis Weighs On USD
By Kenny Fisher   |  Sep 07, 2017 01:59AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

The British pound has posted slight gains in the Wednesday session, following strong gains on Tuesday. In North American trade, GBP/USD is trading at 1.3072, up 0.31% on the day. Earlier in the day, the pound touched a high of 1.3080, its highest level since August 4. On the release front, there are no events in the UK. Over in the US, ISM Non-Manufacturing PMI improved to 55.3, but fell short of the forecast of 55.8 points. On Thursday, the US releases employment claims.

One of the biggest losers in the Brexit saga will be the City of London, which stands to lose its status as the primary financial hub in Europe. There are plenty of players across the Channel casting an eye on the spoils after Britain leaves the European Union. Frankfurt and Dublin are the two main contenders, with Paris and Amsterdam are also hoping to lure large financial companies when they downsize operations in London. On Wednesday, Deutsche Bank chief executive John Cryan argued that Frankfurt is ideally suited to take over from London as the financial hub for European banks, saying it has the structures in place to take over from London. Analysts estimate that London could lose up to 30,000 jobs in the financial services sector, with clients moving up to 1.8 trillion euros in assets from the UK to the continent. Germany could gain 30% of these jobs, which would mark a huge post-Brexit boon for the country.

The ongoing crisis over North Korea and its neighbors continues to weigh on the US dollar. Gold and major currencies have benefited from the crisis, as nervous investors look for alternatives to the greenback. The week started with North Korea announcing that it had exploded a hydrogen bomb which could be fitted to an intercontinental ballistic missile. US President Trump responded by announcing that he would increase weapon sales to Japan and South Korea and on Wednesday, South Korea’s President Moon Jae-in warned that the situation risked becoming “uncontrollable”. If tensions between North Korea and the US worsen, the US dollar could continue to lose ground.

GBP/USD Fundamentals

Wednesday (September 6)

  • 8:30 US Trade Balance. Estimate -44.6B. Actual -43.7B
  • 9:45 US Final Services PMI. Estimate 56.8. Actual 56.0
  • 10:00 US ISM Non-Manufacturing PMI. Estimate 55.8. Actual 55.3
  • 14:00 US Beige Book

Upcoming Key Events

Thursday (September 7)

  • 8:30 US Unemployment Claims. Estimate 245K

*All release times are GMT

*Key events are in bold

GBP/USD for Wednesday, September 6, 2017

GBP/USD Chart: September 5-6
GBP/USD Chart: September 5-6

GBP/USD September 6 at 12:00 EDT

Open: 1.3031 High: 1.3075 Low: 1.3019 Close: 1.3067

GBP/USD Technical

S1 S2 S1 R1 R2 R3
1.2865 1.2946 1.3058 1.3159 1.3267 1.3347
  • GBP/USD inched lower in the Asian session and edged higher in European trade. In the North American session, the pair moved higher but has retracted
  • 1.3058 has switched to a support level following gains by GBP/USD
  • 1.3159 is the next resistance line

Further levels in both directions:

  • Below: 1.3058, 1.2946, 1.2865 and 1.2767
  • Above: 1.3159, 1.3267 and 1.3347
  • Current range: 1.3058 to 1.3159

OANDA’s Open Positions Ratio

GBP/USD ratio remains unchanged this week. Currently, long positions have a slender majority (52%), indicative of slight trader bias towards GBP/USD continuing to move upwards.

Original post

Pound Rises To 4-Week High As Korean Crisis Weighs On USD

Related Articles

Pound Rises To 4-Week High As Korean Crisis Weighs On USD

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email