The British pound has posted slight losses in the Tuesday session. In North American trade, GBP/USD is trading at 1.3240, down 0.32% on the day. In the U.K, mortgages provided by major banks rose to 39.2 thousand, beating the estimate of 38.2 thousand. In the U.S, the Richmond Manufacturing Index improved to 20 points, above the estimate of 15 points. This marked a 3-month high. Over in the U.S, CB Consumer Confidence dropped to 126.4, shy of the estimate of 127.6 points. On Wednesday, the Bank of England will release its semi-annual financial stability report, and BoE Governor will host a press conference about the report. Over in the U.S, the focus will be on durable goods orders.
The Brexit negotiations are moving at a snail’s pace, much to the dismay of the business sector. On Monday, auto giant BMW expressed concern about the “ongoing uncertainty” over the lack of clarity regarding future customs arrangements between Britain and the EU. A senior BMW executive said that if its vehicles were stopped at the border, the company could cease its production operations in the UK. These comments come on the heels of a similar warning from Airbus, which said that if a Brexit deal wasn’t reached, the company could close up shop in the UK. With the Brexit deadline of March 2019 looming, investors could lose confidence in the pound if Britain and the EU don’t reach an agreement on a new trade relationship after Brexit.
There is widespread concern among central bankers that recent protectionist moves could hamper global growth and financial stability. This was the message on Sunday from the Bank of International Settlements (BIS), which acts as an umbrella group for some 60 central banks. The BIS also warned that the escalating trade war could have negative side effects on the currency markets. At the same time, the BIS expressed support for the Federal Reserve raising interest rates gradually and for the ECB heading towards normalization as it winds up its massive asset program.
Tuesday (June 26)
- 4:30 British High Street Lending. Estimate 38.2K. Actual 39.2K
- 5:00 British MPC Member Haskel Speaks
- 5:30 British MPC Member McCafferty Speaks
- 9:00 US S&P/CS Composite-20 HPI. Estimate 6.9%. Actual 6.6%
- 9:59 US Richmond Manufacturing Index. Estimate 15. Actual 20
- 10:00 US CB Consumer Confidence. Estimate 127.6. Actual 126.4
- 13:00 US FOMC Member Rafael Bostic Speaks
Wednesday (June 27)
- 4:30 BoE Governor Mark Carney Speaks
- 4:30 BoE Financial Stability Report
- 4:30 BoE FPC Statement
- 6:00 British CBI Realized Sales. Estimate 10
- 8:30 US Core Durable Goods Orders. Estimate 0.5%
- 8:30 US Durable Goods Orders. Estimate -0.9%
*All release times are DST
*Key events are in bold
GBP/USD for Tuesday, June 26, 2018
GBP/USD June 26 at 11:50 DST
Open: 1.3281 High: 1.3292 Low: 1.3207 Close: 1.3240
GBP/USD was flat in the Asian session. The pair edged lower in European trade and is flat in the North American session
- 1.3186 is providing support
- 1.3263 has switched to a resistance role after losses by GBP/USD on Tuesday
- Current range: 1.3186 to 1.3263
Further levels in both directions:
- Below: 1.3186, 1.3088 and 1.2996
- Above: 1.3263, 1.3494, 1.3613 and 1.3726
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