February 6, 2012
GBP/USD bounced up and down the 1.5800 handle last Friday like a seesaw. But after the pair plunged to its intraday low of 1.5750, the pound started to pare its losses and ended the day 15 pips above its opening price at 1.5817.
Aside from the positive vibes brought about by the much-anticipated U.S. NFP report, it also helped the pound that the services PMI from the U.K. came in better than expected. The index for January came in at 56.0, topping both the 53.5 forecast and its previous reading of 54.0.
Consequently, the report, along with the positive construction and manufacturing PMIs for January, has gotten a few market junkies excited that we might not hear the BOE increase its asset purchase program when it announces its interest rate decision this week. If this becomes the case, we may just see the pound post new monthly highs against the dollar. So with that said, be sure you don't miss the announcement on Thursday at 12:00 pm GMT.
Until then, pay attention to the other reports we have on tap from the U.K. For today, we have the Halifax HPI due to be released at 8:00 am GMT. It is anticipated to show that house prices increased by 0.1% in January. A better-than-expected figure will probably help keep GBP/USD trading above the 1.5800 handle in today's trading so be on your toes!
Last edited by PipDiddy; 02-05-2012 at 08:58 PM.
"The only cable I watch is the pound baby."