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4 Mar 2013
Forex: GBP/USD dips to fresh lows after UK PMI
The sterling dropped to the area around 1.5000/10 after the Construction PMI in the UK fell to 46.8 during February, missing the median at 49.0 and January’s 48.7
The poor result is accelerating the downside, threatening to breach the psychological mark at 1.5000
“As a result of the risks of renewed quantitative easing by the BoE, the willingness of the central bank to tolerate above target inflation for several more years now, comments talking down the pound, the weak UK macro economic outlook and the recent downgrade of the UK credit rating, we expect Cable to trade in a lower 1.40-1.50 range over the next few months”, explained M.Mohi-uddin, Director of FX Strategy at UBS.
At the moment, GBP/USD is down 0.22% at 1.5011 and a break below 1.5000 (psychological level) would open the door to 1.4985 (low Mar.1) and finally 1.4949 (low Jul.12 2010).
On the flip side, resistance levels line up at 1.51000 (psychological level) ahead of 1.5180 (MA10d) and then 1.5186 (high Mar.1).
The poor result is accelerating the downside, threatening to breach the psychological mark at 1.5000
“As a result of the risks of renewed quantitative easing by the BoE, the willingness of the central bank to tolerate above target inflation for several more years now, comments talking down the pound, the weak UK macro economic outlook and the recent downgrade of the UK credit rating, we expect Cable to trade in a lower 1.40-1.50 range over the next few months”, explained M.Mohi-uddin, Director of FX Strategy at UBS.
At the moment, GBP/USD is down 0.22% at 1.5011 and a break below 1.5000 (psychological level) would open the door to 1.4985 (low Mar.1) and finally 1.4949 (low Jul.12 2010).
On the flip side, resistance levels line up at 1.51000 (psychological level) ahead of 1.5180 (MA10d) and then 1.5186 (high Mar.1).