JPY Daily News

Events Outside the UK are Driving the GBP

Sterling continues to perform well and a weakening USD has helped. Tuesday's release of manufacturing PMI below the 50 level was offset today with the release of a stronger construction PMI survey which came in at 53.9 vs. forecasts of 50.0. The significantly higher than expected result has helped the GBP/USD climb above 1.6000 but the pair failed to hold the gains.

Today UK services PMI will be released with expectations of a 1 point decrease from the previous month's survey to 51.9. Stronger data may help the GBP stay afloat as it has done this week, at least more so than the EUR. Keep in mind that the GBP is trading at higher level from when BOE announced additional quantitative easing. This fact hints that external factors are driving the movements of the GBP/USD. The GBP may be caught in the crossfire of larger issues at hand such as the Greek drama and central bank policies from the Fed and ECB. The GBP/USD has support at 1.5890 where the rising support line from the October 12th low is found. Resistance is this week's high at 1.6165.

Current Time: 05/27 01:07 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
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