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GBP/USD – Pound Shows Little Movement in Cautious Trading

The pound is steady in Monday trading, as the pair trades in the mid-1.66 line in the North American session. In economic news, the Empire State Manufacturing Index missed the estimate but Industrial Production posted a strong gain. In the UK, Rightmove HPI posted its third straight gain. The crisis in the Ukraine continues to dominate the news, and has dampened market sentiment.

It’s being described as the worst crisis on the European continent since the end of the Cold War. On Sunday, Crimea, a southern region of the Ukraine, voted overwhelmingly to leave the Ukraine and join Russia. The results brought joy to most residents of Crimea, who are of Russian ethnicity. However, the vote has been sharply denounced by the EU and the US as illegal, and both have warned Russia against annexing the region. Western nations are expected to impose stiff sanctions if Russia does not step back and respect Ukrainian sovereignty, but Moscow has not given any indication of backing down. The standoff between East and West is likely to get worse, and the turmoil could well affect the markets this week.

In the US, concern about the job market eased after a solid Unemployment Claims release late last week. The key indicator dropped to 315 thousand, down from 323 thousand the previous week. This beat the estimate of 334 thousand. This was the indicator’s lowest level in three months. Core Retail Sales and Retail Sales both posted gains of 0.3%, which were within market expectations. These indicators are the primary gauges of consumer spending, and although the gains were modest, they mark an improvement over the January readings.

 

GBP/USD for Monday, March 17, 2014

Forex Rate Graph 21/1/13

GBP/USD March 17 at 14:45 GMT

GBP/USD 1.6662 H: 1.6666 L: 1.6605

 

GBP/USD Technical

S3 S2 S1 R1 R2 R3
1.6329 1.6416 1.6549 1.6705 1.6765 1.6896

 

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

GBP/USD ratio is posting gains in long positions. This is consistent with what we are seeing from the pair, as the pound has edged higher. 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 pound.

GBP/USD is showing little movement on Monday. The pair has edged higher early in the North American session.

 

GBP/USD Fundamentals

*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.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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