UK Manufacturing PMI rose to three-month high

GBP/USD Daily Forecast – 01 February

From the UK, yesterday, only minor importance GfK Consumer Sentiment data was released. British consumer morale rose for a second month in a row in January to hit its highest level since last summer, but households remain pessimistic about the outlook for the country's economy, a survey showed on Friday. Market research firm GfK said its overall consumer sentiment indicator rose to +4 in January from +2 in December, stronger than a median forecast of +1 in a Reuters poll of economists. "UK consumers remain resiliently bullish this month with no sign of the January blues denting their view on the state of their personal finances for both the past year and also for the rest of 2016," Joe Staton, Head of Market Dynamics at GfK, said. Read more...

GBP/USD Daily Forecast – 01 February

After it was initially pushed higher in the course of the Friday's session, Sterling found area around 1.44 handle to be too resistive at the moment and pulled back sharply, all the way to 1.4150 handle at one moment, thus forming a shooting star, which is of course a negative sign. On Monday, main market mover will be UK Manufacturing PMI figures. Weaker than expected figures would cause further decline, with initial support around 1.4150 level, while better than forecasted data would bring small rebound but with resistance around 1.4280 area.

GBP/USD Weekly Forecast – 01 February – 05 February

Events that marked the week:

Wednesday brought UK house prices data. House prices increased by 0.3% in January, while annual house price growth broadly stable at 4.4%, according to the latest Nationwide report. The pace of UK house price growth remained broadly stable during January. Indeed, annual house price growth has remained in a fairly narrow range between 3% and 5% since the summer of 2015. This trend was maintained in January, with house prices up 4.4% over the year, broadly in line with the 4.5% increase recorded in December.