The pound has posted modest gains on Wednesday, as GBP/USD is trading slightly below the 1.55 line in the North American session. In the UK, BBA Mortgage Approvals improved to 36.4 thousand. BOE Governor Mark Carney delivered remarks at an event in London. Over in the US, Federal Reserve head Janet Yellen continues a second day of testimony in Congress. US New Home Sales remained unchanged at 481 thousand, beating expectations.
There was good news on from the US housing sector on Wednesday, as New Home Sales remained unchanged in January at 481 thousand. This easily beat the estimate of 471 thousand. Earlier in the week, Existing Home Sales dropped sharply to 4.82 million, a 9-month low. On Friday, we’ll get a look at Pending Home Sales, with the markets expecting strong gain of 2.5%, following a sharp decline of 3.7% in December.
Janet Yellen testified before a Senate committee on Tuesday, saying that the Fed was “unlikely” to raise interest rates in the next few months, given current economic conditions. Her remarks seemed aimed at quelling rising speculation about a rate hike sometime in mid-2015, which has helped boost the US dollar’s performance against its major rivals. Yellen noted that the continuing growth should lead to the unemployment rate continuing to fall. The Fed Chair will resume testimony before the House Financial Services Committee on Wednesday, but it’s not likely that Yellen’s comments will shake up the markets.
GBP/USD for Wednesday, February 25, 2015
GBP/USD February 25 at 16:30 GMT
GBP/USD 1.5489 H: 1.5539 L: 1.5453
- GBP/USD posted gains in the Asian session. The pair has shown limited change in the European and North American sessions.
- 1.5392 has strengthened in support as the pair trades at higher levels.
- 1.5505 is a weak resistance line. 1.5642 is stronger.
- Current range: 1.5392 to 1.5505
Further levels in both directions:
- Below: 1.5392, 1.5282, 1.5165, 1.5008 and 1.4873
- Above: 1.5505, 1.5642, 1.5786 and 1.5888
OANDA’s Open Positions Ratio
(Shows the ratio of long vs. short positions held for the GBP/USD among all OANDA clients. The left percentage (blue) shows long positions; the right percentage (orange) shows short positions.)
GBP/USD ratio is pointing to gains in long positions on Wednesday. This is consistent with the pair’s movement, as the pound trades at higher levels. The ratio has a majority of long positions, indicative of trader bias towards the pound moving higher.
- 9:30 British BBA Mortgage Approvals. Estimate 36.2K. Actual 35.4K.
- 10:00 BOE Governor Carney Speaks.
- 15:00 US Federal Reserve Chair Janet Yellen testifies in Congress.
- 15:00 US New Home Sales. Estimate 471K. Actual 481K.
- 15:00 US Mortgage Delinquencies. Actual 5.68%.
- 15:30 US Crude Oil Inventories. Estimate 3.6M. Actual 8.4M.
*Key releases are highlighted in bold
*All release times are GMT