x
Breaking News
0

Pound Yawns As Construction PMI Beats Expectations

By Market Pulse (Kenny Fisher)ForexDec 05, 2017 12:33AM ET
www.investing.com/analysis/gbpusd--pound-yawns-as-construction-pmi-beats-expectations-200270446
Pound Yawns As Construction PMI Beats Expectations
By Market Pulse (Kenny Fisher)   |  Dec 05, 2017 12:33AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The British pound has ticked higher in the Monday session. In North American trade, GBP/USD is trading at 1.3455. On the release front, British Construction PMI in November looked sharp, accelerating to 53.1 points, above the forecast of 51.2 points. This marked the highest level since June. In the US, Factory Orders declined 0.1%, the first decline since July. Still, this beat the forecast of -0.3%. On Tuesday, the UK releases Services PMI, which is forecast to dip to 55.2 points. The US publishes ISM Non-Manufacturing PMI, with the markets expecting the indicator to slow to 59.2 points.

After sweetening the British offer over its Brexit bill last week, Prime Minister Theresa May is anxious to change the focus of the Brexit negotiations and talk trade with Europe. Prime Minister May and European Commission President Jean-Claude Juckner met earlier on Monday in Brussels, hoping to move closer to wrapping up the first phase of the talks. May has moved closer to the European’s demands on a divorce bill of around EUR 50 billion, but two items have yet to be resolved. One is the border between the UK (Northern Ireland) and Ireland, which is a member of the EU. The UK will clearly not remain in a customs union with the EU, but Ireland is insistent that there not be a hard border. The second issue is whether the European Court of Justice will have a role protecting European citizens in the UK. The EU is in favor of a role for the court, while many British lawmakers feel that such a move would impinge on British sovereignty.

President Trump has asked lawmakers in Washington for a tax reform bill for Christmas, and Congress, at least on the Republican aisle, appears to be in a giving mood. After a false start and some anxious hours on Friday, the US Senate passed a tax reform bill on the weekend. The vote was a squeaker, with 51 Republicans voting yes, against 48 Democrats and 1 Republican. The Senate vote is a big win for President Trump, as tax reform would mark his first major legislative bill in office, after a stinging defeat in trying to pass a new health care bill. The Senate and House must now reconcile their two tax bills, and the new uniform bill will then have be passed in both houses. Investors are pleased with the legislation, and the dollar and the stock markets could continue to gain as a result of positive market sentiment.

GBP/USD Fundamentals

Monday (December 4)

  • 4:30 British Construction PMI. Estimate 51.2. Actual 53.1
  • 10:00 US Factory Orders. Estimate -0.3%. Actual -0.1%
  • 19:01 British BRC Retail Sales Monitor

Tuesday (December 5)

  • 4:30 British Services PMI. Estimate 55.2
  • 10:00 US ISM Non-Manufacturing PMI. Estimate 59.2

*All release times are GMT

*Key events are in bold

GBP/USD for Monday, December 4, 2017

GBP/USD December 4 at 12:40 EDT

Open: 1.3434 High: 1.3539 Low: 1.3414 Close: 1.3456

GBP/USD Technical

S1 S2 S1 R1 R2 R3
1.3186 1.3321 1.3402 1.3503 1.3655 1.3809

GBP/USD showed little movement in the Asian session. In European trade, the pair dipped lower but then reversed directions and posted considerable gains. GBP/USD has lost ground in the North American session.

  • 1.3402 is providing support
  • 1.3503 is the next resistance line

Further levels in both directions:

  • Below: 1.3402, 1.3321 and 1.3186
  • Above: 1.3503, 1.3655, 1.3809 and 1.3901
  • Current range: 1.3402 to 1.3503

OANDA’s Open Positions Ratio

In the Monday session, GBP/USD ratio is showing short positions with a majority (55%). This is indicative of trader bias towards GBP/USD reversing directions and moving lower.

Original post

Pound Yawns As Construction PMI Beats Expectations
 

Related Articles

Pound Yawns As Construction PMI Beats Expectations

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
Post also to:
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.
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
or
Sign up with Email