News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:https://t.co/zn56iTXcpk https://t.co/NmQzIm39lj
  • Latest update on #Evergrande focusing on the Australian Dollar "Australian Dollar Eyes Evergrande as USD Bondholders Still Await Interest Payments" #AUD $AUDUSD https://www.dailyfx.com/forex/market_alert/2021/09/24/Australian-Dollar-Eyes-Evergrande-as-USD-Bondholders-Still-Await-Interest-Payments.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/AAU8nMn0ou
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/3bjMHrUZRJ
  • 🇹🇭 Balance of Trade (AUG) Actual: $-1.22B Expected: $0.97B Previous: $0.18B https://www.dailyfx.com/economic-calendar#2021-09-24
  • Heads Up:🇹🇭 Balance of Trade (AUG) due at 03:30 GMT (15min) Actual: $-1.22B Expected: $0.97B Previous: $0.18B https://www.dailyfx.com/economic-calendar#2021-09-24
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cC4v7H https://t.co/uhBNvCTHrW
  • Evergrande USD bondholders say have yet to receive interest due Thursday -BBG
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/J0vSWHaADc
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDrr7M https://t.co/nmP0MX8LGM
  • 🇯🇵 Core Inflation Rate YoY (AUG) Actual: 0.0% Expected: 0% Previous: -0.2% https://www.dailyfx.com/economic-calendar#2021-09-23
GBP/USD Fails To Break 1.6900 Amid Roaring UK Services PMI Figure

GBP/USD Fails To Break 1.6900 Amid Roaring UK Services PMI Figure

Edward Hyon,

Talking Points:

  • UK Markit/CIPS Composite PMI (Jul): 58.8 Actual Vs 58.0 Estimated; 58.0 Prior.
  • UK Markit/CIPS Services PMI (Jul): 59.1 Actual Vs 58.0 Estimated; 57.7 Prior.
  • GBP/USD Trades at a Day High at 1.6882 after UK Services PMI Reaches 8-Month High.

Want to trade with proprietary strategies developed by FXCM? Find out how here.

UK Services PMI accelerated to 59.1 for the month of July from the prior month reading of 57.7, according to Markit. The print outpaced market expectations of 58.0 and the British services industry grew at its highest level since November 2013. Moreover, UK Composite PMI rose to 58.8 in July from 58.0 in June. This reading was also above consensus which pointed to a print of 58.0. Readings above 50 indicate an expansion in services activity, and a number below 50 marks a contraction.

However, there has been an increased deterioration relative to expectations in the UK data flow since late February. This outcome has been impounded on GBP/USD, causing it to slump to a potential eight-week low. This may suggest that analysts are over-estimated the health of the economy and opening the door for a downside surprise and weigh on British Pound says DailyFX Currency Strategist Ilya Spivak.

Ahead of the data, the British Pound lost ground against the US Dollar to trade as low as 1.6845. Straight after the data release, GBP/USD catapulted to hit a session high of 1.6882. Furthermore, UK 10-Year Gilt added 3 basis-points to yield 2.56 percent after the data as better-than-expected services data may have caused traders to increase bets for a rate-hike.

Looking ahead, the focus transitions to ISM Manufacturing Composite gauge from the US, which is due at 14:00 GMT, later today. The expectation is for a print to drop in at 56.5 in July compared to 56.0 in June to show US service-sector growth accelerated to the fastest pace in 11-months. An upbeat reading may push the US Dollar higher as it will encourage speculation that the US economy may be sufficiently strong for the Federal Reserve to raise interest rates sooner-than-later says Ilya Spivak.

For many that regards technical analysis, Ilya Spivak mentions near-term support to rest at 1.6818-22 (38.2% Fib Ret.) and support-turned-resistance at 1.6929. He remains opportunistic to get short at a more attractive level rather than a trade-able rally. Meanwhile according to DailyFX Speculative Sentiment Index, 56 percent of retail Forex traders are long the GBP/USD.

GBP/USD 5 Minute Chart

GBP/USD Fails To Break 1.6900 Amid Roaring UK Services PMI Figure

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

New to FX? START HERE!

Edward Hyon, DailyFX Research Team

Keep up to date on event risk with DailyFX Calendar

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES