Pound in decline on softer region data

6 February, 2019

The contrast of economic data between the US and Europe grows more prominent, as European statistics begin to look considerably despondent.

Business sentiments in Europe are weakening, while the Sentix Investor Confidence index hits its lowest levels in 4 years. The Producer Price Index in December of last year sees a slow down of annual growth to 3.0% against the 4.9% two months prior.

The latest PMI data released on Tuesday was better than expected at 51.0, however, still at its lowest since mid-2013.

A similar picture is observed in the UK where the Services PMI dropped to 50.1 against the 51.2 in the previous month (where 50 is the mark that separates growth from a decline). This new data from the UK is yet another reminder of how Brexit uncertainly is influencing the business activity.

However, British consumers rush to the stores, clearly concerned about the rise in prices once the country leaves the EU.

In this setting, the EURUSD pair pressured against the dollar to 1.14 completely returned its gains after the recent FOMC meeting. The GBPUSD pair went through that barrier last Friday and came down to a 2 week low of 1.30.

The US ISM non-manufacturing PMI Index is due to be released today and on average the analytics are expecting a decrease from 57.6 to 57.2. However, even if these predictions fall through, there are no signs that America’s business activity is slowing down, which in turn will continue to support the dollar.


Source   Presented by FxPro
Pound surges as UK elections exit polls

GBPUSD has gained over two percent to breach 1.35, reaching its highest level since May 2018, as the UK election's exit polls show the Conservatives...

Trading Election Day - GBP/USD

Going into today's election there is a slight "uneasiness" about the whole thing and that there is a sense of deja vu. Deja vu about what you might...

GBP/USD has one more resistance line

GBP/USD is trading in the mid 1.28s after Nigel Farage's Brexit Party boosted Prime Minister Boris Johnson's chances of winning. How high can cable climb?


Pound tumbles as Johnson seeks December 12 Election

Sterling fell out of favour with investors on Thursday after U.K Prime Minister Boris Johnson called for a general election on...

Pound's pullback creates buying opportunity

The British pound rally over the last week came to an abrupt end after a mixed day in the British parliament yesterday which still left many questions...

Pound shoots higher despite Brexit drama

The British Pound was in high demand on Monday despite UK lawmakers delaying a crucial Brexit vote over the weekend. Markets...


GBPUSD headed for 1.30 after UK

The Pound soared towards the 1.30 level against the US Dollar, after UK Prime Minister Boris Johnson and European Commission President...

Pound steady as Brexit negotiators race to meet deadline

The Pound is gaining against the US Dollar, amid reports that Brexit negotiators are rushing to try and meet a midnight...

Sterling Rises on Brexit Plan Release

A sea of red in US stocks yesterday after the US reported weak PMI data. The Dow Jones Industrial Average declined by 343 points while the Nasdaq...