GBP/USD dribbles around 1.1280 as fears surrounding the UK’s economic conditions probe the pair buyers after a two-week uptrend. That said, the Cable pair retreats from a one-week top during Tuesday’s Asian session.
The quote managed to extend the previous gains on Monday amid hopes of sound economic policies from ex-Chancellor Rishi Sunak as he will be the next British Prime Minister after Liz Truss’ shortest serving time. The Tory member turned down the need for general elections and saved the nation from another time-consuming method and increased optimism in the beginning.
However, the fears that Sunak’s leadership isn’t the only cure for the British economy amid downbeat numbers and fears of the Bank of England’s (BOE) restrain to act seemed to have weighed on the GBP/USD prices.
As per the first readings of the UK S&P Global PMIs for October, the Manufacturing activities’ gauge dropped to 45.8 versus 48.0 expected and 48.4 prior while its services counterpart slid to 47.5 from 50.0 previous reading and 49.0 market forecasts. With this, the Composite PMI for the said month declined to 47.2 compared to 48.1 anticipated and 49.1 prior.
On the other hand, the US S&P Global PMIs for October suggests that the Manufacturing activities’ gauge dropped to 49.9 versus 51.2 expected and 52.0 prior while its services counterpart slid to 46.6 from 49.3 previous reading and 49.2 market forecasts. With this, the Composite PMI for the said month declined to 47.3 compared to 49.1 anticipated and 49.5 prior.
It should be noted that the mixed feeling in the markets amid an absence of Fed speakers and geopolitical concerns surrounding China and Russia also weigh on the GBP/USD prices.
Amid these plays, Wall Street closed with gains while the US Treasury yields also ended the day on the positive side after a downbeat start.
Moving on, a light calendar on Tuesday may allow GBP/USD bulls to pare some of their recent gains. Also, recently increasing hawkish Fed bets also could weigh on the prices ahead of the key US Gross Domestic Product for the third quarter (Q3).
GBP/USD pair’s failure to provide a daily closing beyond a six-week-old resistance line, near 1.1285 by the press time, as well as the 50-DMA hurdle surrounding 1.1400, keeps sellers hopeful of revisiting the monthly support line near 1.1085.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.