7 Apr 2015
GBP/USD clouded by politics, below 1.4830 to trigger losses – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team feels that the election uncertainty is keeping GBP/USD pressurized as the pair failed to rise in spite of strong Services PMI.
Key Quotes
“Sterling can't get out of its own way, as the political cloud hangs over it. The Markit/CIPS services PMI rose to 58.9 from 56.7. It is the highest since last August and helps offset the weakness in the service spending (January was reported last week at -0.2%).”
“The manufacturing PMI was also stronger than expected, leaving the construction as the one disappointment of the three PMIs. The composite rose to 58.8 from 56.7 and is also the highest since last August.”
“Sterling has not traded above $1.50 since March 19, having been turned back after approaching it yesterday. Ironically, the 5-day average is crossing above the 20-day average for the first time since March 4.”
“If the $1.4830 area fails to hold, support is seen in the $1.4780-$1.4800 area.”
“Chunky options struck at $1.49 area set to expire today and tomorrow, and may be a consideration for the price action.”
Key Quotes
“Sterling can't get out of its own way, as the political cloud hangs over it. The Markit/CIPS services PMI rose to 58.9 from 56.7. It is the highest since last August and helps offset the weakness in the service spending (January was reported last week at -0.2%).”
“The manufacturing PMI was also stronger than expected, leaving the construction as the one disappointment of the three PMIs. The composite rose to 58.8 from 56.7 and is also the highest since last August.”
“Sterling has not traded above $1.50 since March 19, having been turned back after approaching it yesterday. Ironically, the 5-day average is crossing above the 20-day average for the first time since March 4.”
“If the $1.4830 area fails to hold, support is seen in the $1.4780-$1.4800 area.”
“Chunky options struck at $1.49 area set to expire today and tomorrow, and may be a consideration for the price action.”