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6 Sep 2013
GBP/USD landing again on “earth” data
FXstreet.com (Athens)- The GBP/USD is heading towards a second “red” day, on dismal UK data that caught off-guard the traders over the globe.
Risk-aversion is looming, UK data approaching ‘earth’ figures again, GBP/USD..falling
After reporting a robust string of PMI reports this week (and since June), UK let down traders on flat industrial production report today. What’s more, the 0.2% rise in manufacturing output was also a tad below expectations. However, the real out of the blue disappointment lies with the trade report. The trade deficit released more than doubling to £3.1bn from £1.3bn in June. Elaborating on, weaker goods exports to non-EU countries were the main problem with the oil balance another source. Furthermore, mining and quarrying fell 0.5%, utilities output was down 2.2%, presumably due to good weather and water supply rose 1.2%. All in all, the manufacturing and industrial production in the British economy came in on the softer side on Friday, expanding 0.2% and 0.0% on a monthly basis during July, both prints missing the median. Last but not least, the silver lining in the report is that it shows a small improvement in trade with the EU itself.
Technical Outlook and Strategic bias on GBP/USD
Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented, “While above the 1.5508 2 month up channel, we remain unable to rule out further upside probes and only a close below here will negate current upside pressure and allow for a slide back to the 1.5430/24 recent lows and then 1.5104 the August low”. The GBP is underperforming as a result, although US jobs data is the upcoming focus and should overshadow the impact on GBP/USD by far. It is of great importance to mention that even amidst poor UK data, the pair still is just below 20-25 pips below 1.5600 area.At the time of writing, GBP/USD is trading at 1.5578, down 0.08%, relatively near the day low (1.5565). The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15-minutes chart. Daily pivot point support can be found at S3: 1.5545 S2: 1.5520 S1: 1.5500 and resistance at R1:1.5605 R2:1.5645 R3:1.570, respectively.
Risk-aversion is looming, UK data approaching ‘earth’ figures again, GBP/USD..falling
After reporting a robust string of PMI reports this week (and since June), UK let down traders on flat industrial production report today. What’s more, the 0.2% rise in manufacturing output was also a tad below expectations. However, the real out of the blue disappointment lies with the trade report. The trade deficit released more than doubling to £3.1bn from £1.3bn in June. Elaborating on, weaker goods exports to non-EU countries were the main problem with the oil balance another source. Furthermore, mining and quarrying fell 0.5%, utilities output was down 2.2%, presumably due to good weather and water supply rose 1.2%. All in all, the manufacturing and industrial production in the British economy came in on the softer side on Friday, expanding 0.2% and 0.0% on a monthly basis during July, both prints missing the median. Last but not least, the silver lining in the report is that it shows a small improvement in trade with the EU itself.
Technical Outlook and Strategic bias on GBP/USD
Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented, “While above the 1.5508 2 month up channel, we remain unable to rule out further upside probes and only a close below here will negate current upside pressure and allow for a slide back to the 1.5430/24 recent lows and then 1.5104 the August low”. The GBP is underperforming as a result, although US jobs data is the upcoming focus and should overshadow the impact on GBP/USD by far. It is of great importance to mention that even amidst poor UK data, the pair still is just below 20-25 pips below 1.5600 area.At the time of writing, GBP/USD is trading at 1.5578, down 0.08%, relatively near the day low (1.5565). The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15-minutes chart. Daily pivot point support can be found at S3: 1.5545 S2: 1.5520 S1: 1.5500 and resistance at R1:1.5605 R2:1.5645 R3:1.570, respectively.