Forex Marketz Daily Forex News – Fully Markets Update
The British pound is trading lower against the safe haven U.S. dollar. The benchmark GBP/USD currency exchange rate is trading near 1.3750 on Wednesday. This is just above the weekly low price point of 1.3733.
Yesterday, unemployment data out of the United Kingdom improved. The unemployment rate fell to 4.7 percent and more workers were added to business payrolls. Monthly retail sales, however, were down minus 1.1 percent. This was worse than the expected contraction of 0.3 percent.
Geopolitics will effect sentiment linked currencies like the British pound. Financial market participants are following events in Afghanistan closely. The Taliban have seized control of the country after the U.S. withdrew forces.
The United Kingdom is releasing their monthly core and headline consumer price index numbers. Britain will also publish monthly factory gate prices. Also known as the producer price index (PPI). The UK will also publish monthly house price index (HPI) data. The Federal Open Market Committee (FOMC), the policy arm of their Federal Reserve, will release their monetary policy meeting minutes.
Daily British Pound Technical Analysis (GBP/USD)
The United States will also releasing weekly crude oil inventory numbers. The U.S. will also publish monthly housing starts and monthly building permits numbers. The euro area is releasing final monthly consumer price index (CPI) data.
Looking at the above daily GBP/USD MT 4 price action chart, the technical indicators are just below their mid-points signaling more potential losses for the British pound. Price action in the GBP/USD Forex market is also below the 50, 100 and 200 day simple moving averages.
While below the 200 day simple moving average. This Forex market remains looking lower. The downside barrier lining up at the 2 July low price point 1.3730 could come back into focus. The next downside barrier lines up at 1.37.
On the upside, the 200 day simple moving average lines up at 1.3785 with 1.38 then coming into play. The 50 day simple moving average lines up at 1.3872.
