The pound is showing little movement in Tuesday trade. Currently, GBP/USD is trading at 1.2679, down 0.02% on the day. On the release front, there are no major British events. In the U.S., CB consumer confidence improved to 134.1 points.
The U.S. consumer remains very optimistic about the economy, according to the latest CB consumer confidence index. The index jumped to 134.1 in May, up from 129.2 in the April release. This score easily beat the estimate of 130.1 and is close to 18-year highs. Retail sales were soft in April, but the sharp improvement in consumer confidence has raised hopes that retail sales data will improve in May.
The European parliament elections have shaken up the political landscape across the continent, as populist and nationalist parties made strong gains at the expense of the center-right and center-left mainstream parties. The U.K. also participated in the elections, and the Brexit Party easily won the day, capturing 29 seats. Labor came in second place with 10, and the Conservatives won just 4 seats. The election results were a resounding backlash against the mainstream parties for their handling of Brexit, which has dragged on past the original deadline, with no solution in sight. For investors, the worst-case scenario is a no-deal exit, which could undermine the economy and send the British pound sharply lower. Unless May can pull a Brexit rabbit out of her hat, it will be up to her replacement, as yet unknown, to try and hammer out a withdrawal deal with Brussels.
Tuesday (May 28)
- 4:30 British High Street Lending. Estimate 39.3K. Actual 43.0K
- 9:00 US HPI. Estimate 0.2%. Actual 0.1%
- 9:00 US S&P/CS Composite-20 HPI. Estimate 3.1%. Actual 2.7%
- 10:00 US CB Consumer Confidence. Estimate 130.1. Actual 134.1
- 19:01 British BRC Shop Price Index
*All release times are DST
*Key events are in bold
GBP/USD for Tuesday, May 28, 2019
GBP/USD May 28 at 10:30 DST
Open: 1.2680 High: 1.2702 Low: 1.2654 Close: 1.2679
GBP/USD was flat for most of the Asian session. The pair showed stronger movement in European trade but was unable to consolidate any gains. GDP/USD has posted small gains in the North American session
- 1.2615 is providing support
- 1.2723 is the next resistance line
- Current range: 1.2615 to 1.2723
Further levels in both directions:
- Below: 1.2615, 1.2477 and 1.2401
- Above: 1.2723, 1.2841, 1.2910 and 1.3000
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