U.S. dollar is being sold again after DXY touched 95 last week. Trump's trade wars not helping the buck either. U.K. Services PMI came in better than expected yesterday and that helped to send GBP/USD above 1.34. 1.35 is the next target, while 1.33 - 1.335 support area holds.
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Cable looks heavy
Cable continues to trade around 1.25 after Article 50 was triggered last week. Manufacturing PMI and Construction PMI both came in weaker than expected. A solid Services PMI today may not discourage sellers for too long.
1.24 - 1.2425 (50 DMA, 100 DMA) is the immediate support before 1.2375 (last week's low). A move below that would target 1.23 - 1.2325. Area around 1.25 (yesterday's high) is the first stronger resistance.
1.24 - 1.2425 (50 DMA, 100 DMA) is the immediate support before 1.2375 (last week's low). A move below that would target 1.23 - 1.2325. Area around 1.25 (yesterday's high) is the first stronger resistance.
Cable sells off after weak services PMI
One-off flash Markit PMIs for U.K. services and manufacturing came in at 47.4 (vs. 48.9 expected) and 49.1 (vs. 47.8 expected), respectively. A fall in the services index rises odds of a rate cut by the BOE in August.
Cable lost about 100 pips so far after the release and is currently stalling near yesterday's low (~1.3150). The next stronger support levels are Wednesday's low (~1.3065) and 1.30. In case of a rebound, 1.32 - 1.3225 looks like a decent resistance.
Cable lost about 100 pips so far after the release and is currently stalling near yesterday's low (~1.3150). The next stronger support levels are Wednesday's low (~1.3065) and 1.30. In case of a rebound, 1.32 - 1.3225 looks like a decent resistance.
Cable testing 1.50
There was almost no pullback following last Friday's outsized NFP moves, which may signal that the market is eager to get on board of potential broader USD pullback. Cable traded up to Daily Resistance 1 and stalled 15-20 pips ahead of Weekly Resistance 1 and big 1.50 level. Tomorrow's Services PMI may push it through, if it comes out better than expected.