GBP/USD: Preliminary PMIs set to show severe contraction
Services sector likely to suffer far more than manufacturing.
GBP/USD Technical analysis, overview, strategies, and levels
Although the pound managed to best the US dollar for a change, the gains have done little to shift its current technical overview with neither end of its key pivot points reaching yesterday. UK CPI (Consumer Price Index) was as expected dropping to 1.5% overall with its core (excludes energy) a notch lower at 1.6%. PPI (Producer Price Index) figures contracted, while HPI (House Price Index) registered a lower than expected growth of 1.1% for the month of March. Up next are Markit's estimate for preliminary manufacturing and services PMIs (Purchasing Managers Index), expected to show ongoing and severe contraction with the services sector suffering more so than manufacturing. We'll also get retail data tomorrow expected to show significant contraction. But that doesn't mean there won't be anything in store for GBP/USD once we're out of the European session, as US unemployment claims will be one to watch for USD pairs.
IG client* and CoT sentiment for GBP/USD
GBP/USD Chart with retail and institutional sentiment
*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.
Be sure to request IG’s Weekly & Daily Market Report when you open an account with IG Dubai and get access to the full information on the FX majors, commodities, indices, and Bitcoin.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
