By Kenny Fisher
The British pound has steadied on Tuesday, as GPB/USD trades in the mid-1.66 range. In economic news, Construction PMI weakened in February and fell short of expectations. In the US, today's sole release, IBD/TIPP Economic Optimism, showed little change.
British Construction PMI disappointed, dropping to 62.4 points, down from 64.4 a month earlier. The estimate stood at 63.4 points. Analysts blamed the softer reading on recent heavy floods and rains which battered the country and hampered construction activity. We'll get a look at Services PMI on Thursday.
After a less than stellar week, US releases started the new trading week on a positive note. ISM Manufacturing PMI improved to 53.2 points in January, beating the estimate of 52.3. On Friday, Pending Home Sales posted a paltry gain of 0.1%, well below the estimate of a 2.9% gain. However, the reading was a strong improvement over the January reading of -8.7%. Earlier in the week, Unemployment Claims came in above the estimate and GDP also missed the forecast. Although market sentiment remains positive about the US economy, recent key releases have not impressed, and the dollar will find itself under pressure this week if US numbers don't show improvement.
GBP/USD for Tuesday, March 4, 2014
GBP/USD March 4 at 16:20 GMT
GBP/USD 1.6655 H: 1.6717 L: 1.6641
- GBP/USD has edged lower in Tuesday trading. The pair touched a high of 1.6717 late in the Asian session but has since retracted.
- 1.6549 continues to provide support. This is followed by support level at 1.6416.
- On the upside, 1.6705 has reverted to a resistance role. Next, there is resistance at 1.6896, protecting the 1.69 line.
- Current range: 1.6549 to 1.6705.
Further levels in both directions:
- Below: 1.6549, 1.6416, 1.6329 and 1.6231
- Above: 1.6896, 1.6964, 1.7087 and 1.7192
OANDA's Open Positions Ratio
GBP/USD ratio is pointing to gains in positions on Tuesday, reversing directions from the previous day. This is not consistent with the pair's current move, as the pound has edged lower. A large majority of the open positions in the GBP/USD ratio are short, indicative of a trader bias towards the dollar making further inroads against the pound.
GBP/USD is trading in the mid-1.66 range, and has edged lower in the North American session.
- 9:30 British Construction PMI. Estimate 63.6 points. Actual 62.6 points.
- 15:00 US IBP/TIPP Economic Optimism. Estimate 45.6 points. Actual 45.1 points.
*Key releases are highlighted in bold
*All release times are GMT
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose