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.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • Missed today's Cross-Market Weekly Outlook webinar? See the recording here: https://t.co/d1rb3hCZTH We discussed: - US-China #trade deal - #Brexit outlook after the UK general election - US #Dollar outlook going into 2020
  • European Opening Calls From IG: #FTSE 7392 +0.53% #DAX 13346 +0.48% #CAC 5955 +0.60% #AEX 607 +0.74% #MIB 23509 +0.77% #IBEX 9622 +0.61% #STOXX 3754 +0.61%
  • Traders should know how to confidently approach, enter and exit both Bull or Bear markets. Need some insight into it? Get it from @nickcawley1 here: https://t.co/GhvvFrB3gz https://t.co/IbzSBk5Hb1
  • Join @DavidCottleFX 's #webinar at 3:00 AM ET/8:00 AM GMT for your weekly update on the top Asia Pacific market drivers that traders should watch this week. Register here: https://t.co/HNf3Axw8s5 https://t.co/iMMiza1J1d
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/im72E4Szmi
  • The Riksbank – the world’s oldest central bank - will exit its negative interest rate policy for the first time in known history as officials explore uncharted territory with unknown consequences. https://www.dailyfx.com/forex/fundamental/article/special_report/2019/12/16/Worlds-Oldest-Central-Bank-to-Exit-Negative-Rate-Policy-First.html
  • The Indonesian Rupiah, Malaysian Ringgit, Philippine Peso and Singapore Dollar may continue their rise against the US Dollar on global optimism amid a US-China trade deal #ASEAN #IDR #PHP #USD - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/12/16/Indonesian-Rupiah-Malaysian-Ringgit-May-Rise-on-US-China-Deal.html?CHID=9&QPID=917702 https://t.co/GYaUYookwM
  • LIVE NOW: In this session, Currency Analyst @ZabelinDimitri will preview the upcoming week's main political themes and discuss their impact on financial markets. https://www.dailyfx.com/webinars/146770987
  • LIVE IN 30 MIN: In this session, Currency Analyst @ZabelinDimitri will preview the upcoming week's main political themes and discuss their impact on financial markets. https://www.dailyfx.com/webinars/146770987
  • How will the $JPY respond as the Bank of Japan appears to begin walking back from years of assuring the markets that ‘powerful monetary easing’ would be enough to stoke inflation? Get your market update from @DavidCottleFX here:https://t.co/ETZgk4xf5U https://t.co/ArTaaTninN
GBP/USD Overlooks UK Construction PMI; Focus Turns To US Manufacturing

GBP/USD Overlooks UK Construction PMI; Focus Turns To US Manufacturing

2014-09-02 08:54:00
Edward Hyon,
Share:

Talking Points:

  • UK Construction PMI (Aug): 64.0 Actual Vs 61.5 Estimated; 62.5 Prior.
  • GBP/USD Remain Relatively Muted Despite Roaring UK Construction PMI.
  • Looking Ahead BoE Rate Decision (Sep): 0.50% Estimated; 0.50% Prior.

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

According to data compiled by Markit/CIPS, UK Construction PMI accelerated to 64.0 in August compared to 62.4 reported in July. This is the fastest reading in eight-months and exceeded market expectations of 61.5.

Before the data, the British Pound managed to recover some of the earlier losses against the US Dollar to trade firmly below 1.6600 level. Immediately after the release of the better-than-expected Construction PMI data, GBP/USD had a muted reaction and continued to trade firmly below the psychologically important 1.6600 level.

Later today at 14:00 GMT, attention will turn to August’s US ISM Manufacturing data. The data is expected to reveal that US manufacturing sector expanded at 57.0 from a three-year high of 57.1 in the previous month. Moreover, later in the week, traders’ focus will turn to the high profile Bank of England Rate Decision that is scheduled to be released at 11:45 GMT on Thursday. The BoE is expected to leave rates unchanged at 0.50 percent, which was held since February 2009. This is on the backdrop of last month’s BoE Minutes that revealed an interest rate vote of 7-2 from 7-0 in the prior count by the MPC members.

In regards to technical analysis,Ilya Spivak mentions near-term support to 1.6533 (38.2% Fib Exp.) and resistance at 1.6613 (trend line resistance). He remains flat for now as he argues against entering short with prices trading in close proximity to support level and there is an absence of a defined bullish reversal signal.Meanwhile according to DailyFX Speculative Sentiment Index, the ratio of long to short positions in the GBP/USD stands at 1.43 as 59 percent of traders are long.

GBP/USD 5 Minute Chart

GBP/USD Overlooks UK Construction PMI; Focus Turns To US Manufacturing

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

News & Analysis at your fingertips.