GBPUSD:
On Thursday, the GBP/USD pair made a recovery, rising by 0.4% as cable traders attempted to maintain the price above the 1.2900 mark. The UK Purchasing Managers’ Index (PMI) data released early Thursday generally fell short of expectations. However, the PMI components for services and manufacturing remained above the 50.0 mark, indicating growth.
US PMI data generally exceeded expectations, limiting the decline of the US dollar and maintaining the GBP/USD rate just below 1.3000. The US Manufacturing PMI increased to 47.8 in October, exceeding expectations of 47.5 and representing a further improvement on the figure of 47.3 recorded in August. Meanwhile, the services PMI increased to 55.3, exceeding the anticipated decline to 55.0 from 55.2 in the previous month.
On Friday, there will be no further UK economic data releases, leaving markets to focus on US durable goods orders and an updated forecast for 5-year consumer inflation from the University of Michigan (UoM). Analysts anticipate a 1.0% decline in US durable goods orders in September, extending the recent downward trend following August’s 0.0% reduction. The University of Michigan (UoM) is expected to release consumer expectations for October on 5 October, which are anticipated to be in line with the previous reading of 3.0%.
Trading recommendation: We follow the level of 1.3000, if it is fixed above we consider Buy positions, if it bounces back we consider Sell positions.
Origin: FreshForex
