GBP/USD pushed lower by US data
At midday the Bank of England will announce interest rate decisions and asset purchasing facilities and both of these are expected to remain unchanged. This year alone has already seen 20 central banks decide to stimulate the markets by cutting interest rates and the race for who Australia or Canada will cut a second time this year could be a close-run thing. As a backdrop to whatever the BoE would like to do, it is increasingly unlikely that it (and the US) will be able to contrast the majority of global central banks without undue risk.
This week’s economic data has been broadly good for the UK however manufacturing and services figures posted in the US yesterday were even better, once again giving GBP/USD an extra nudge lower.
Having failed to hold above the 100-day moving average for more than 24 hours the fall to the 50-DMA looked almost inevitable. A break through this $1.5250 level and back down to the $1.50 region looks likely to materialise.