July 4, 2012
Not too much action on pound pairs yesterday, which pretty much traded within their daily ranges. GBP/JPY struggled to break above its weekly open price at 125.30, while GBP/USD finished slightly lower at 1.5690, just 30 pips below its opening price.
We got mixed results on the economic data, as the construction PMI and net lending to individuals reports had contrasting releases.
The construction PMI came in much worse-than-expected, printing at 48.2, after it was projected to come in at 52.9 This marks the first time since January 2011 that the index has printed in the red and indicates potential contraction in the construction industry.
On the other hand, credit conditions seem to be better than initially estimated, as consumer loans amounted to 1.3 billion GBP last month, which is slightly higher than the anticipated 1.1 billion GBP figure. Hopefully, credit conditions continue to hold up and we see more lending and spending take place in order to boost the U.K. economy.
For today, all we’ve got on our plates is the services PMI, due at 8:30 am GMT. According to our trusty economic calendar, the index is projected to print at 52.9. If we see the report come in much better-than-expected, it could give the pound a slight boost up the charts!
Last edited by PipDiddy; 07-03-2012 at 08:47 PM.
"The only cable I watch is the pound baby."