GBP/USD remains on recovery mode, all eyes on UK services PMI


  • British political optimism confronts doubts over the US Dollar.
  • Political news, UK Services PMI will be in the spotlight.

Although expectations of an end to Brexit deadlock, coupled with overall greenback weakness, help the GBP/USD pair off-late, traders remain cautious ahead of the key services PMI data as the quote seesaws near 1.2700 while heading into the London open on Wednesday.

Tuesday’s 14-month low UK construction PMI could do little harm to the Cable as chances of a good trade deal with the US past-Brexit and speculations favoring Brexit supporter Boris Johnson to become next British PM grew stronger.

Adding to the pair’s strength could be the US Dollar (USD) decline on the back of market’s run for safe-havens amid trade the US-led tussles and not so hawkish comments from the Fed policymakers.

With British lawmakers almost near to make Boris Johnson as the next PM, they might not take too much time for an announcement after present PM Theresa May departs on June 07, which in turn could be extra positive for the Brexit proceedings that have been stopped since more than two weeks.

In addition to political developments surrounding the race to next UK PM and the US President Donald Trump’s British visit, May month Markit services purchasing manager index (PMI) will be the key to forecast fresh moves. The leading indicator to the UK GDP is expected to rise to 50.6 5rom 50.4 earlier.

It should also be noted that comments from the Bank of England’s (BOE) Deputy Governor Dave Ramsden and Fed’s Vice Chair Richard Clarida could offer additional insights to determine near-term trade sentiment.

Technical Analysis

While 1.2650 and latest lows near 1.2560 can limit the pair’s south-run towards December 2018 low around 1.2480, an upside clearance of 1.2750 can propel prices to February month lows around 1.2775 and 1.2800.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD rebounds to 1.1350 on modest dollar weakness

EUR/USD regained its traction after declining toward 1.1320 during the European session and rose to 1.1350 area. The dollar's is facing modest selling pressure amid falling US Treasury bond yields and allowing the pair to continue to edge higher ahead of the weekend.

EUR/USD News

GBP/USD struggles to pull away from 10-day low set near 1.3550

GBP/USD fell toward 1.3550 on Friday and touched its weakest level in 10 days. Although the US Dollar Index stays in the negative territory in the early American session, the risk-averse market environment doesn't allow the pair to stage a convincing recovery.

GBP/USD News

Gold reclaims $1,840 amid falling US T-bond yields

Gold reversed its direction after testing $1,830 earlier in the day and turned positive on the day above $1,840. The benchmark 10-year US Treasury bond yield is losing more than 3% at 1.75%, fueling XAU/USD's rebound.

Gold News

BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read more

Will the Netflix stock price rebound?

Netflix stock edged down after better than expected Q4 results. Will the Netflix stock price rebound? Expectations of rising subscription and higher prices are bullish for Netflix stock price.

Read more

Forex MAJORS

Cryptocurrencies

Signatures