GBP/USD: Preliminary PMIs set to show severe contraction
Services sector likely to suffer far more than manufacturing.
GBP/USD Technical analysis, overview, strategies, and levels
Although the pound managed to best the US dollar for a change, the gains have done little to shift its current technical overview with neither end of its key pivot points reaching yesterday. UK CPI (Consumer Price Index) was as expected dropping to 1.5% overall with its core (excludes energy) a notch lower at 1.6%. PPI (Producer Price Index) figures contracted, while HPI (House Price Index) registered a lower than expected growth of 1.1% for the month of March. Up next are Markit's estimate for preliminary manufacturing and services PMIs (Purchasing Managers Index), expected to show ongoing and severe contraction with the services sector suffering more so than manufacturing. We'll also get retail data tomorrow expected to show significant contraction. But that doesn't mean there won't be anything in store for GBP/USD once we're out of the European session, as US unemployment claims will be one to watch for USD pairs.
IG client* and CoT sentiment for GBP/USD
GBP/USD Chart with retail and institutional sentiment
*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.
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