This week, the British Pound expects a busy week, with the rate decision being the peak. After the weekend break, the opening price of GBPUSD almost lost the ground level after Friday’s US Non- farm payroll report was released. This data increased by 162,000 in March, and the unemployment was held at 9.7 percent, the U.S. Bureau of Labor Statistics reported.
The Chartered Institute of Purchase and Supply/Markit construction PMI index jumped from 48.5 to 53.1last month in February. Sarah Ledger economist at Markit said increase in March PMI data indicates the growth of activity within the UK construction sector. This kind of growth in construction sector in March took place for the first time in more than two years. This was supported by rising new orders, as private sector demand increased. After this report the Pound goes down. Cable spun lower after Prime Minister Brown called for a general election on 6 May and Parliament was dissolved.
On Wednesday, the major data was released in regards to the British Pound called Services PMI; the services sector is doing quite well but shows weaker data than expectations–purchasing managers expecting the economic expansion. Previously it was 58.4, the actual was 56.1 (less than forecasted -58.1) .It resulted in some selling pressure on GBP.
Today there are four major economic indicators going to be published, which are very important for the British Pound. The first data called Halifax HPI, House Price Index data shows it was previously -1.6 percent and actual is 1.1, which is more than forecasted (forecasted 0.6 percent).The second data called Manufacturing Production m/m, last month it was dropped by 1 percent and now it is 1.3 percent which is more than expected (forecast was 0.7 percent).Published data is slightly positive for Great British Pound. Another data called Rate decision (it involves Official Bank Rate, Minimum Bid Rate) was published yesterday. All the rates are published unchanged. Official Bank Rate is 0.50 percent which was same last month. The other rate was called Minimum Bid Rate released yesterday unchanged as 1 percent.(The same as the last month).It shows the economy of Britain is improving which is positive for GBP.
National Institute of Economic and Social Research (NIESR), GDP publishes every quarter. This release will complete the first quarter of 2010 and is expected to show a small rise in GDP. NIESR showed a rise of 0.3 percent last time. On Friday PPI(British Producer Price) will be published. In this indicator the PPI input forecasted rose from 0.1 percent to 1.2 percent.PPI output expected to rise from 0.3 percent to 0.4 percent.
As per the chart showing the support for the GBPUSD is at 1.4789 which is the lowest of 2010.The next support at 1.4539 which was the low of last year (April, 2009).On the other hand the resistance is at 1.5404 which was the strong resistance of the last year (January, 2009).
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