By Kenny Fisher
The pound is showing huge gains in Tuesday trading. The pound has gained about 150 points as GBP/USD trades in the mid-1.67 range in the North American session. The currency got some help from UK Manufacturing Production, which posted its strongest gains in five months. As well, NIESR GDP Estimate improved last month. In the US, JOLTS Job Openings was up sharply in March.
The pound jumped following an excellent reading from Manufacturing Production, the first major British release this week. The indicator gained 1.0%, easily surpassing the estimate of 0.3%. Industrial Production, a minor event, followed suit, climbing to 0.9%, well above the estimate of 0.3%. There was more good news, as NIESR GDP Estimate improved to 0.9%, after two straight readings of 0.8%. This monthly indicator helps analysts gauge GDP, which is released on a quarterly basis.
In the US, the dollar is down broadly, but there was good news on the employment front, as JOLTS Job Openings jumped above the 4.00 million level, climbing to 4.17 million last month. This was well above the estimate of 3.99 million and comes after Nonfarm Payrolls and Unemployment Claims both missed their estimates late last week.
GBP/USD for Tuesday, April 8, 2014
GBP/USD April 8 at 14:40 GMT
GBP/USD 1.6739 H: 1.6755 L: 1.6607
- GBP/USD has posted sharp gains in Tuesday trade. The pair pushed above the 1.67 line early in the European session.
- On the downside, 1.6705 has switched to a support line as the pound surges higher. There is stronger support at 1.6549.
- 1.6765 is a weak resistance line. Will it manage to contain the pound's rally? Next, there is strong resistance at 1.6896, protecting the 1.69 line.
Further levels in both directions:
- Below: 1.6705, 1.6549, 1.6416, 1.6329 and 1.6236
- Above: 1.6765, 1.6896, 1.70 and 1.7210
OANDA's Open Positions Ratio
GBP/USD ratio is pointing to gains in short positions on Tuesday. This is consistent with the movement of the pair, as strong gains by the pound have led to numerous open short positions being covered, resulting in a larger percentage of long positions. A large majority of the open positions in the GBP/USD ratio are short, indicative of a trader bias towards the dollar recovering and posting gains against the pound.
The pound is up sharply on Tuesday. After strong gains in the European session, the pair has steadied in North American trading.
- 8:30 British Manufacturing Production. Estimate 0.3%. Actual 1.0%.
- 8:30 British Industrial Production. Estimate 0.3%. Actual 0.9%
- 11:30 US NFIB Small Business Index. Estimate 92.3 points. Actual 93.4 points.
- 14:00 US JOLTS Job Openings. Estimate 3.99M. Actual 4.17M.
- 14:00 British NIESR GDP. Estimate 0.9%.
- 17:30 US FOMC Member Narayana Kocherlakota Speaks.
- 18:45 US FOMC Member Charles Plosser Speaks.
- 23:01 British BRC Shop Price Index.
*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.