Sterling still climbing
The pound is a touch higher versus the dollar this morning ahead of the UK services report at 9.30am (London time). The market is expecting a reading of 59.2 in May, and the April survey came in at 59.5. The UK construction PMI report came in higher than anticipated yesterday as the Conservative victory last month gave a boost to the industry. A strong services report will drive GBP/USD higher.
A broad decline in the dollar yesterday was triggered by comments from Federal Reserve member Lael Brainard. Ms Brainard stated the latest US economic data does not warrant a rate hike this month. As previously stated, it will be hard for the Fed to justify a rate rise in the near-future in light of the negative first-quarter growth quarters, and this will assist GBP/USD.
The pound is receiving support at $1.53 and if this mark is held the resistance at $1.54 will be in play. A move through that mark will put $1.55 on the radar. A drop back below $1.53 will bring the support at $1.52 into sight.