The pound has edged higher in Wednesday trade, as GBP/USD is trading in the high-1.65 range in the North American session. In the US, manufacturing numbers was a mix, as Durable Goods Orders posted a strong gain, but Core Durable Good Orders came in short of the estimate. There are no British releases on Wednesday, but we’ll get a look at Retail Sales, one of the most important economic indicators, early on Thursday.
In the US, manufacturing data was a mix on Wednesday. Core Durable Goods Orders posted a weak gain of 0.2%, shy of the estimate of 0.3%. Durable Goods Orders looked sharper, jumping 2.2% last month. This broke a mini-streak of two straight declines, and easily surpassed the estimate of 1.1%. On Tuesday, New Home Sales missed the forecast but CB Consumer Confidence climbed to a six-year high.
The crisis in the Ukraine is far from over, but at least the danger of further military activity has receded, for now. The US and its European allies have imposed limited sanctions on Russia after its annexation of Crimea, but are holding off on additional measures if Russia does not take further military action. The lack of a tough response from the West reflects divisions within Europe over how strong a stance to take against Moscow. Meanwhile, the Ukraine has signed an association agreement with the EU and is seeking a loan package of up to $20 billion from the IMF. Ukraine’s economy has suffered badly after months of political turmoil and the country is in dire need of financial assistance.
GBP/USD for Wednesday, March 26, 2014
GBP/USD March 26 at 16:20 GMT
GBP/USD 1.6576 H: 1.6579 L: 1.6510
- GBP/USD has posted gains on Wednesday, as the pair moves towards the 1.66 line.
- On the downside, 1.6549 has switched to a support role. This is a weak line which face more pressure during the day. This is followed by support at 1.6416.
- 1.6705 is the next resistance line. There is stronger resistance at 1.6765.
- Current range: 1.6549 to 1.6705.
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 short positions on Wednesday, reversing the direction we saw a day earlier. This is not 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 reversing its current downward trend.
The pound is trading near the 1.66 line and continues to put pressure on the US dollar in the North American session.
- 12:30 US Core Durable Goods Orders. Estimate 0.3%. Actual 0.2%.
- 12:30 US Durable Goods Orders. Estimate 1.1%. Actual 2.2%.
- 13:45 US Flash Services PMI. Estimate 54.2 points. Actual 55.5 points.
- 14:30 US Crude Oil Inventories. Estimate 2.9M. Actual 6.6M.
- 20:30 US Bank Stress Results.
*Key releases are highlighted in bold
*All release times are GMT