GBPUSD Movement
For the 24 hours to 23:00 GMT, the GBP declined 0.63% against the USD and closed at 1.3395 on Friday.
The Pound surged earlier in the session, on news that the UK and the European Union (EU), after weeks of negotiations, have reached a Brexit deal that allows arduous negotiations to move to the next stage.
On the macro front, UK’s manufacturing production surprisingly climbed 0.1% on a monthly basis in October, against market expectations for a flat reading. In the previous month, manufacturing production had recorded a rise of 0.7%. Meanwhile, the nation’s industrial production remained flat on a monthly basis in October, meeting market expectations. Industrial production had recorded a rise of 0.7% in the previous month. On the other hand, the nation’s construction output unexpectedly eased 1.7% MoM in October, dipping by the most since March 2016, highlighting that the sector, increasingly bogged-down by Brexit worries, is losing momentum. Markets had anticipated construction output to rise 0.1%, after recording a fall of 1.6% in the previous month.
Another set of data indicated that the NIESR, leading think tanker, estimated that UK’s gross domestic product (GDP) climbed more-than-anticipated by 0.5% in the September-November period, following a similar rise in the prior month. Meanwhile, the nation’s total trade deficit slightly widened to £1.41 billion in October, while investors had envisaged for a deficit of £3.0 billion. In the previous month, the nation had posted a revised total trade deficit of £1.14 billion.
In the Asian session, at GMT0400, the pair is trading at 1.3397, with the GBP trading marginally higher against the USD from Friday’s close.
Overnight data revealed that UK’s Rightmove house price index eased 2.6% MoM in December. The index had registered a drop of 0.8% in the previous month.
The pair is expected to find support at 1.3329, and a fall through could take it to the next support level of 1.3260. The pair is expected to find its first resistance at 1.3493, and a rise through could take it to the next resistance level of 1.3588.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
