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GBP/USD – British pound edges higher despite sharp US data

GBP/USD has posted gains in the Tuesday session, continuing the trend seen on Monday. In the North American session, the pair is trading at 1.3162, up 0.34% on the day. On the release front, British CBI Industrial Order Expectations came in at -1, well off the estimate of 5 points. In the U.S, CB Consumer Confidence, jumped to 138.4, crushing the estimate of 132.2 points. On Wednesday, the spotlight will be on the Federal Reserve, which is likely to raise interest rates to a range between 2.00% and 2.25%.

The Brexit talks continue to sputter, and British Prime Minister May suffered another blow last week, when her proposals on Brexit were rebuffed by European leaders at a summit in Salzburg. Investors and the business sector remain jittery about the British economy, and the concerns are becoming compounded as the days tick closer to Brexit Day next March. The week started off poorly, as CBI manufacturing order expectations came in at -5, compared to an estimate of +1 point.

The U.S and China fired more trade salvos at each other this week, and that could spell bad news for the Japanese yen. On Monday, the U.S imposed tariffs on some $200 billion worth of Chinese goods, while China responded with tariffs of $60 billion on U.S products. There may be more headwinds ahead, as China sharply attacked the U.S, saying it had plunged “a knife to China’s neck” with the new tariffs. The Chinese have canceled trade talks with the Trump administration, and no new talks are likely to be held until the mood improves between the world’s two largest economies. Previous rounds of tariffs between the two economic giants have boosted the U.S dollar, but so far, investors have reacted calmly and have not snapped up the U.S dollar at the expense of other currencies.

$100 per barrel oil ?? [1]

Euro bounces as Italy targets lower deficit ratio [2]

If in doubt, look to the Fed for direction [3]


GBP/USD Fundamentals

Monday (September 24)

Tuesday (September 25)

Wednesday (September 26)

*All release times are DST

*Key events are in bold


GBP/USD for Tuesday, September 25, 2018

GBP/USD September 25 at 11:05 DST

Open: 1.3118 High: 1.3176 Low: 1.3095 Close: 1.3162


GBP/USD Technical

S1 S2 S1 R1 R2 R3
1.2852 1.2966 1.3088 1.3173 1.3301 1.3458

In the Asian session, GBP/USD ticked lower. The pair posted gains in European trade and is steady in the North American session

Further levels in both directions:

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [7]

Market Analyst at OANDA [8]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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