December 21, 2010
With no major news being released, there was no catalyst to bust GBP/USD out of the 100 pip range it traded in yesterday. After seesawing up and down the charts throughout the day, at the end of the day, Cable ended up right where it started at 1.5510.
Preliminary mortgage approvals data came in slightly weaker than anticipated, posting a figure of 45,000 after it was expected to come in at 47,000. This is probably what kept the pound from regaining any of its losses from last Friday.
Earlier today, the GFK consumer confidence report was also released, and as predicted, the figure wasn’t that rosy. The report printed a score of -21, which indicates that British consumers have the same level of pessimism that they did in the previous month.
I have to wonder, will the recent snowstorms hitting the U.K. continue to affect consumer sentiment? Apparently, these are some of the worst snowstorms in almost 2 years and the last time we saw weather like this, consumer spending took a hit. We’ll have to wait and see in the coming months whether it did indeed affect Christmas shopaholics.
For today, we’ve got one red flag going up the economic pole in the form of public sector borrowing figures. The report, which basically measures how much the government spent (or saved) in the previous month. Consensus is that the government will post a deficit of 17 billion GBP for the month of November. Will a worse than expected figure send the pound tumbling down the charts?
Last edited by PipDiddy; 12-20-2010 at 08:31 PM.
"The only cable I watch is the pound baby."