GBP/USD has lost close to 100 points on Tuesday, as the pair trades in the mid-1.56 range in the North American session. This has wiped out the sharp gains the pair made on Monday. On the release front, British Construction PMI slipped to 59.4 points, a 13-month low. In the US, there are no major releases on the schedule. Federal Reserve Chair Janet Yellen will delivered remarks at an event in Washington.
The sole UK event on the calendar was a huge disappointment and sent the pound reeling. British Construction PMI dropped to 59.4 points, the first time it has slipped below the 60-point level since October 2013. This was well short of the estimate of 61.1 points. On Wednesday, we’ll get a look at Services PMI, and the government will present the semi-annual budget update. Traders should be prepared for further volatility from the pound following these key releases.
GBP/USD for Tuesday, December 2, 2014
GBP/USD December 2 at 16:15 GMT
GBP/USD 1.5644 H: 1.5743 L: 1.5634
- GBP/USD was flat in the Asian session. The pair posted sharp losses in the European trade, breaking below support at 1.5717 and putting strong pressure on the 1.5644 line.
- 1.5717 has reverted to a resistance role as the pound has posted strong losses. 1.5864 is next.
- On the downside, 1.5644 was tested earlier and remains fluid. Will the pair break below this line? 1.5505 is stronger.
- Current range: 1.5644 to 1.5717
Further levels in both directions:
- Below: 1.5644, 1.5505, 1.5392 and 1.5282
- Above: 1.5717, 1.5864, 1.6000, 1.6141 and 1.6263
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 the pound has posted strong losses. The ratio has a majority of long positions, indicative of trader bias towards the pound recovering and moving higher.
- 9:30 British Construction PMI. Estimate 61.1 points. Actual 59.4 points.
- 13:10 US FOMC Member Stanley Fischer Speaks.
- 13:30 US Federal Reserve Chair Janet Yellen Speaks.
- 15:00 US Construction Spending. Estimate 0.6%. Actual 1.1%.
- All Day – US Total Vehicle Sales. Estimate 16.6M.
- 17:00 US FOMC Member Lael Brainard Speaks.
*Key releases are highlighted in bold
*All release times are GMT