GBP/USD has posted gains on Tuesday, as the pair trades in the mid-1.55 range in the North American session. After a slow start to the week, there were releases from the UK and US on Tuesday. In the UK, Nationwide HPI edged lower to 0.2%. Over in the US, CB Consumer Confidence rose to 92.4 points, short of the estimate.
British Nationwide HPI, an important gauge of the health of the housing sector, continues to soften. The December reading dipped to 0.2%, short of the estimate of 0.3%. This weaker gain is somewhat surprising, given that British employment and consumer spending data has been strong. Analysts expect the housing market to pick up in early 2015 and are not overly concerned that the indicator has slowed over the past two releases.
With the US economy showing better numbers as we head into 2015, the US consumer is showing more optimism about the economy. On Tuesday, CB Consumer Confidence rose to 92.6 points, up from 88.8 a month earlier. Although this missed the estimate of 94.6, this was a solid reading which follows last week’s UoM Consumer Sentiment report. That indicator has been on an upward swing and hit 93.6 points in December, its highest level since February 2007. Consumer confidence numbers are closely watched, as increased confidence should translate into more spending by consumers, creating more jobs and strengthening economic activity.
GBP/USD for Tuesday, December 30, 2014
GBP/USD December 30 at 14:15 GMT
GBP/USD 1.5570 H: 1.5574 L: 1.5501
- GBP/USD was flat in the Asian session. The pair has posted slight gains in the European session and this trend continues in North American trade.
- 1.5644 is an immediate resistance line. 1.5717 is next.
- On the downside, 1.5505 has some breathing room as the pair trades at higher levels.
- Current range: 1.5505 to 1.5644
Further levels in both directions:
- Below: 1.5505, 1.5392, 1.5282 and 1.5165
- Above: 1.5644, 1.5717, 1.5864, 1.6000 and 1.6141
OANDA’s Open Positions Ratio
USD/CAD is pointing to gains in long positions on Tuesday. This is consistent with the pair’s movement, as the pound has posted gains on the day. The ratio has a majority of long positions, indicative of trader bias towards the pound continuing to move to higher ground.
- 14:00 US S&P/CS Composite-20 HPI. Estimate 4.4%. Actual 4.5%.
- 15:00 US CB Consumer Confidence. Estimate 94.6 points. Actual 92.6 points.
*Key releases are highlighted in bold
*All release times are GMT
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