GBP/USD Daily Forecast – 04 February

Yesterday's session brought UK Services PMI data. The current period of rising UK service sector output was extended to over three years in January, as signalled by the Business Activity Index remaining above the no-change mark of 50.0. The index was little-changed from December’s 55.5, at 55.6, and broadly in line with the average over the second half of 2015. Growth in January was slightly stronger than the long-run survey average, but weaker than the strength achieved in 2013 (56.9), 2014 (58.2) and 2015 (56.7).

GBP/USD Daily Forecast – 04 February

Sterling was pushed higher in the course of the yesterday's session, breaking well above 1.45 handle and going even above 1.46 handle. This is mostly result of dollar squeeze occurring in the US part of the session, with USD edging lower against all major rivals. On Thursday, main market mover will be BoE rate decision and the following Minutes. More dovish tone would push pair back, perhaps even below 1.45 handle, while more hawkish stanzas could case an uptrend all the way to 1.4750 handle and even above it. Read more...

UK Services PMI little changed in January

GBP/USD Daily Forecast – 03 February

From the UK, yesterday, Construction PMI figures were published. January data pointed to a renewed slowdown in output growth across the UK construction sector. At 55.0, down from 57.8 in December, the headline seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index remained well above the 50.0 no-change value, but signalled the slowest rate of expansion since April 2015. Analysts were anticipating smaller decrease to 57.6. Moreover, aside from the pre-election slowdown recorded last year, the latest reading was the lowest since June 2013. A number of survey respondents noted that softer new business growth had acted as a brake on output growth and staff hiring at the start of 2016.