After starting the week with slight losses, GBP/USD has paused in the Wednesday session. Currently, GBP/USD is trading at 1.2650, down 0.02% on the day. On the release front, there are no British events. In the U.S., the sole event is the Richmond Manufacturing Index, which is projected to climb to 6 points. On Thursday, the U.S. releases Preliminary GDP and unemployment claims.
Inflation in the U.K. has been moving higher. Consumer inflation pushed above the 2% level in April, with a gain of 2.1%. This marked a 4-month high. The upward trend has continued with shop price inflation, which accelerated to 0.8% in May, up from 0.4% in the previous release.
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 U.S. economy continues to perform well, and first-quarter economic growth is expected to remain above the 3% level. Preliminary GDP will be released on Thursday and is expected to post a healthy gain of 3.1%. In April, the initial release came in at 3.2%, easily beating the estimate of 2.2%. If the revised reading also beats expectations, traders can expect the greenback to move higher against its rivals.
Wednesday (May 29)
- 10:00 US Richmond Manufacturing Index. Estimate 6
Thursday (May 30)
- 8:30 US Preliminary GDP. Estimate 3.1%
- 8:30 US Unemployment Claims. Estimate 216K
*All release times are DST
*Key events are in bold
GBP/USD for Wednesday, May 29, 2019
GBP/USD May 29 at 10:25 DST
Open: 1.2653 High: 1.2671 Low: 1.2627 Close: 1.2665
GBP/USD was flat in the Asian session. The pair edged lower in European trade but has recovered 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