By Kenny Fisher
The GBP/USD has started off the new trading week with gains, as the pound has pushed above the 1.66 line on Monday. It's a very quiet day on the release front, with just one US release, Consumer Credit. There are no releases out of the UK on Monday.
Last week's British releases were a disappointment, as all three PMIs missed their estimates for February. The PMI releases are important gauges of the health of the services, manufacturing and construction sectors. The good news is that the PMIs continue to point to expansion, as all three remain well above the 50-point level. Still, if key British indicators continue to miss expectations, the pound could lose ground.
On Friday, the markets eagerly awaited the release of Non-Farm Payrolls, one of the most important economic indicators. The indicator rose nicely last in March, climbing to 192 thousand, compared to 175 thousand a month earlier. However, the markets were looking for more, with the estimate standing at 199 thousand. Unemployment Claims also missed the mark, as it edged up to 6.7%. The estimate stood at 6.6%. Although these numbers were not as strong as hoped, the Federal Reserve is expected to continue trimming QE when it meets at the end of April.
GBP/USD for Monday, April 7, 2014
GBP/USD April 7 at 15:50 GMT
GBP/USD 1.6608 H: 1.6624 L: 1.6566
- GBP/USD has posted gains in Monday trade. The pair pushed above the 1.66 line early in the North American session.
- On the downside, 1.6549 is providing support. 1.6416 is a stronger support level.
- 1.6705 is a strong resistance line.
Further levels in both directions:
- Below: 1.6549, 1.6416, 1.6329, 1.6236 and 1.6146
- Above: 1.6705, 1.6765, 1.6896 and 1.6964
OANDA's Open Positions Ratio
GBP/USD ratio is pointing to gains in long positions on Monday, continuing the trend we saw late last week. This is consistent with what we are seeing from the pair, as the pound has posted gains. A large majority of the open positions in the GBP/USD ratio are short, indicative of a trader bias towards the dollar posting gains against the dollar.
The pound has posted gains and is trading above the 1.66 line. The pair is showing little change in the North American session.
- 19:00 US Consumer Credit. Estimate 14.1B.
*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 all of your deposited funds.