GBP/USD has lost ground on Tuesday, as the pair trades at the 1.68 line in the North American session. In economic news, British BBA Mortgage Approvals continues to weaken and missed expectations. Later in the day, Bank of England Governor Mark Carney speaks in London. In the US, the news was mixed, as manufacturing numbers slid, while consumer confidence had another strong outing.
In the UK, Tuesday’s only economic release was a disappointment, as BBA Mortgage Approvals softened for the third consecutive month. The indicator dropped to 42.2 thousand, well off the estimate of 45.2 thousand. This was the lowest level we’ve since last September, and could point to trouble in the UK housing sector. Later on Tuesday, we’ll hear from BOE head Mark Carney, and the markets will be listening for any hints regarding the possibility of a rate hike.
US Core Durable Goods Orders, the primary gauge of manufacturing activity, disappointed in April. The indicator slumped to just 0.1%, missing the estimate of 0.2%. This compared to a strong gain of 2.0% last month. Durable Goods Orders dropped to 0.8%, but did beat the estimate of -0.5%.
GBP/USD for Tuesday, May 27, 2014
GBP/USD May 27 at 15:00 GMT
GBP/USD 1.6804 H: 1.6882 L: 1.6795
- GBP/USD has lost ground on Tuesday.
- On the upside, 1.6896 has some breathing room as the pound has lost ground.
- 1.6765 is providing support. 1.6705 is stronger.
Further levels in both directions:
- Below: 1.6765, 1.6705, 1.6549 and 1.6436
- Above: 1.6896, 1.70, 1.7210, 1.7374 and 1.7538
OANDA’s Open Positions Ratio
GBP/USD ratio is almost unchanged in Tuesday trade. This is not consistent with the movement of the pair, as the pound has lost ground. 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 has weakened on Tuesday. In the North American session, the pair has edged upward.
- 8:30 British BBA Mortgage Approvals. Estimate 45.2 thousand. Actual 42.2 points.
- 12:30 US Core Durable Goods Orders. Estimate 0.2%. Actual 0.1%.
- 12:30 US Durable Goods Orders. Estimate -0.5%. Actual 0.8%.
- 13:00 US S&P/CS Composite-20 HPI. Estimate 11.9%. Actual 12.4%.
- 13:00 US HPI. Estimate 0.5%. Actual 0.7%.
- 13:45 US Flash Services PMI. Estimate 55.6 points. Actual 58.4 points.
- 13:59 US Richmond Manufacturing Index. Estimate 5 points. Actual 7 points.
- 14:00 US CB Consumer Confidence. Estimate 83.2 points. Actual 83.0 points.
- 19:00 BOE Governor Mark Carney Speaks.
*Key releases are highlighted in bold
*All release times are GMT
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