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The cable posted same movement as its counterpart EUR/USD since similar tendency was developing over the last week. Volatility has been minimal for the first part of the week and even the latest UK manufacturing data failed to change the mood of the instrument. Meanwhile, the UK manufacturing production for March slipped to -1.9% year-on-year, but accelerated from -0.9% to 0.1% on a monthly basis. Moreover, industrial production declined on the yearly comparison from 0.1% to -0.2% and jumped on a monthly pace from -0.2% to 0.3%. Meanwhile, both the Bank of England and the International Monetary Fund warned that the UK economy will grow more slowly if Britain votes to leave the European Union. The BOE said a vote to leave the EU would materially alter the outlook for output and inflation while the IMF said a Brexit would have negative and substantial effects on the UK economy. During the last day of the period, the GBP/USD pair fell to its lowest point since April 22 as the batch of buoyant macro updates from the US provided the greenback with significant support.
The consensus forecast stands for 1.44, right between daily S1 and R1. Nevertheless, market sentiment among respondents is purely bearish, with almost 67% of Community members saying the pair will continue moving to the south later this week. Concerning economic data, a lot of data will come on Thursday, with the usual jobless claims, followed by the Philly Fed manufacturing index for May and leading indicators for April.
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