GBPUSD:
There was little data in Tuesday’s market session: The UK was absent from the market and US data was strictly mid-range. The Richmond Fed Manufacturing Activity Index for June fell sharply to -10 from the previous reading of 0 and missed completely the forecasted increase to 2. The CB Consumer Confidence Index also fell, but not as much as expected: the sentiment indicator fell to 100.4 from the previous reading of 102.0, but stopped just below the forecast of 100.0.
Thursday will see important data releases: the Bank of England’s latest Financial Stability Report, followed by US Durable Goods Orders and revised first quarter Gross Domestic Product (GDP) data.
Friday will conclude an otherwise low-key trading week with a revision to UK quarterly GDP, followed by the latest US Personal Consumption Expenditures (PCE) price index data. Investors will be expecting further declines in critical U.S. inflation readings to support the Fed in readiness for the first rate cut at the Federal Open Market Committee (FOMC) meeting on September 18.
Trading recommendation: Trade mainly with buy orders at the price level of 1.2710. We consider sell orders at the price level of 1.2640.
Origin: FreshForex
