The Pound Sterling (GBP) is up a modest 0.1% against the US Dollar (USD) and outperforming all of the G10 currencies with the exception of NOK, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
Markets digest mixed PMI’s and better public finance figures
“Preliminary PMI’s were mixed as the manufacturing index unexpectedly fell deeper into contractionary (sub-50) territory while services unexpectedly climbed toward the mid-50s. Public finance figures were also better than expected, with net borrowing of GBP1.1bn, leaving the overall deficit on track with the Office for Budget Responsibility (OBR) estimate.”
“UK fiscal developments remain a core concern for markets, as evidenced by recent bond market turbulence and an intensified focus on the Chancellor’s plans for the Autumn Statement (budget plan).”
“The prior bull trend has turned neutral, reflecting a wide ranging, three month consolidation around 1.35. The 50 day MA has flattened out just below 1.35 (1.3497), and remains an anchor. The RSI is confirming the loss of momentum and hovering around 50, at neutral. We look to a near-term range bound between 1.3420 support and 1.3520 resistance.”
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