Back
2 Apr 2013
Forex: GBP/USD at lows on NY session
FXstreet.com (Barcelona) - The GBP/USD is underperforming today, particularly since the publication of the preliminary release of the UK March manufacturing PMI by Markit (contractionary at 46.8, from 47.9 and below 46.6 consensus), allowing a drop from 1.5232 opening price to as low as 1.5121 on the New York opening.
TD Securities analyzed the UK manufacturing PMI: “Employment and new orders were still contracting, but slightly less than in February. Weak export orders to Europe were still cited, but better orders from the US and Asia. Nothing here is suggesting significant risks of either higher or lower next month but ongoing flat performance in manufacturing”, wrote analyst Tim Davis. “There is no indication that anything in this report will do much to mitigate what looks like a Q1 contraction in GDP, but as long as the Services PMI later this week remains close to flat as we and consensus expect, we would expect no extension of QE from the BoE this week too”, he added.
UK money supply fell -0.5% in February, instead of rising 1.1% as expected. The annualized figure improved from -0.8% to +0.5%. Net Lending to Individuals rose £1.6B, beating £0.9B consensus. Consumer credit rose £0.6B, above expectations of £0.3B. Mortgage Approvals disappointed by easing from 54.187K (revised from 54.719K) to 51.653K (consensus at 54.000K).
US Economic optimism by IBD/TIPP came a little higher than expected, rising from 42.2 to 46.2 for the April report, beating the 46.1 consensus but still below the 50.0 threshold. A big drop on the ISM New York was seen in March as it eased from 58.8 to 51.2, remaining in an expansionary pace, though.
“While the pair remains capped at 1.5260 resistance, I favor one final slide towards 1.5100 area to complete the consolidation pattern, before next leg upwards, to 1.5350”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to a bearish intraday outlook through 1.5210, en route to 1.5090 reversal zone.
TD Securities analyzed the UK manufacturing PMI: “Employment and new orders were still contracting, but slightly less than in February. Weak export orders to Europe were still cited, but better orders from the US and Asia. Nothing here is suggesting significant risks of either higher or lower next month but ongoing flat performance in manufacturing”, wrote analyst Tim Davis. “There is no indication that anything in this report will do much to mitigate what looks like a Q1 contraction in GDP, but as long as the Services PMI later this week remains close to flat as we and consensus expect, we would expect no extension of QE from the BoE this week too”, he added.
UK money supply fell -0.5% in February, instead of rising 1.1% as expected. The annualized figure improved from -0.8% to +0.5%. Net Lending to Individuals rose £1.6B, beating £0.9B consensus. Consumer credit rose £0.6B, above expectations of £0.3B. Mortgage Approvals disappointed by easing from 54.187K (revised from 54.719K) to 51.653K (consensus at 54.000K).
US Economic optimism by IBD/TIPP came a little higher than expected, rising from 42.2 to 46.2 for the April report, beating the 46.1 consensus but still below the 50.0 threshold. A big drop on the ISM New York was seen in March as it eased from 58.8 to 51.2, remaining in an expansionary pace, though.
“While the pair remains capped at 1.5260 resistance, I favor one final slide towards 1.5100 area to complete the consolidation pattern, before next leg upwards, to 1.5350”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to a bearish intraday outlook through 1.5210, en route to 1.5090 reversal zone.