8 April, 2016
Ahead of the released U.K. economic reports on Friday, the pound held gains even though the sentiment of the dollar remained vulnerable due to the cautious stance on Fed’s rate hike.
Meanwhile, GBP/USD retreated from 1.41, the session high, to hit 1.40 amid morning’s session and remained steady with 0.32%.
Subsequently, the Cable began easing at 1.40, the low of April 6 and a one-month low and resistance settling at 1.42, the high of April 5.
It was reported on Friday that the manufacturing production lost about 1.1% in February, compared to the expected fall of 0.2%, the U.K. Office for National Statistics said.
In January, the manufacturing production increased 0.5%, suggesting a revised figure from the prior estimate of a 0.7% gain.
On a year-on-year basis, the manufacturing production was seen losing by 1.8% in February, startling forecasts for a 0.7% decline.
The U.K. industrial production was reportedly showing declines by about 0.3% in February, compared to the expected gain of 0.1% after a downward revision of the 0.2% gain in the last month.
In other news, the U.K. trade deficit showed narrowed result of £11.96 billion in February, which was previously at £12.16 billion in January. Its figure was revised from an earlier forecast deficit of £10.29 billion.
Meanwhile, analysts are expecting a trade deficit narrow result of £10.20 billion in February.
The dollar continued to struggle after the March policy meeting of the Fed on Wednesday, implying that raising of interest rates before June is in doubt due to worries over global economic growth.
Conversely, the dollar remained strong, after Janet Yellen, the Fed Chair said on Thursday that the U.S. economy was not a "bubble economy," and the labor market appears to be "healing."
The December decision of a rate hike was not a mistake, Yellen said.
Consequently, the pound was higher against the euro, which shed about 0.27% to 0.80.
Market players kept their guards up as they await the US labor data report, a strong reading of which could urge the Federal Reserve to increase interest rates this month – a decision that would be bearish for non-interest bearing gold...
The US economic growth has been sluggish in the first quarter, although not as strongly as initially expected, amid an increase in spending on home architecture and a constant increase in inventory investment by business...
Oil prices increased more than 1 percent on Monday after Goldman Sachs stated that the market has ended for nearly two years of oversupply subsequent to a global oil disruptions and a market deficit...
The Australian and New Zealand dollars rallied against the greenback on Wednesday, but gains were anticipated to stay capped by lower prices of crude oil...
World stock markets rallied on Tuesday, fueled by a strong corporate earnings in Europe, including improvements on Greek debt talks and Japan’s new pledge in preparation to a weaker currency...
Gold prices ticked higher as the greenback slid to 16-month lows during the session earlier. On the Comex division of the New York Mercantile Exchange, gold delivery for June rallied at $1,303.85 per troy ounce, advancing $6.55 or 0.51 percent...
Analysts forecast that Germany DAX would hit 0.06 percent higher when the market opens, while France’s CAC 40 was anticipated to remain steady. Meanwhile, UK markets are closed due to a public holiday.
Shares in the U.S. plummeted following the decline of the stocks in the Asian market as the Bank of Japan left the interest rate unchanged...
Wall Street futures dropped on Friday after the Dow issued its first decline of more than 1% in two months, while investors are closely watching on data...