GBP/USD hits 1-week lows as V-shaped recovery remains in doubt - normantione2000

GBP/USD extended losses from the previous trading day and touched a caller one-week low in premature Continent trade on Tuesday after a report by the UK Office for National Statistics showed a larger-than-anticipated GDP compression in May.

One-year Gross Domestic Product shrank 24.0% in May, operating theatre at the second sharpest stride happening show, following a 25.3% slump in April. Analysts on the average had expected a 20.4% year-on-yr drop. In monthly terms, UK economy rebounded at a substantially slower rate than expected in May, by 1.8%, shadowing a criminal record 20.3% contraction in April. The latest figures cast doubt happening the Formed recovery many analysts have been sticking out.

Meanwhile, UK's industrial output shrank at an annual rate of 20.0% in May, dragged down by a 22.8% slump in manufacturing production. Notwithstandin, the value of decrease was less steep than anticipated as businesses managed to operate while following multi-ethnic distancing measures.

The Quid and other risk-sensitive currencies came below pressure also attributable escalating diplomatic tensions between Beijing and Washington concluded disputed claims to offshore resources across the South China Sea. The US aforementioned China's claims were "unlawful."

"U.S.-China tensions roughly the plac in the South China Sea helped U.S. dollar and weighed on cyclical currencies nightlong, with the trade adjusted dollar unexhausted unwaveringly in the range of recent weeks," ING analysts wrote in an investor note.

Deepening coronavirus crisis in the United States, Brazil, Republic of India and elsewhere also remained a source of concerns.

As of 10:43 GMT on Tuesday GBP/USD was edging down 0.28% to trade at 1.2518, afterwards touching an intraday low of 1.2506, Oregon a level non seen since July 7th (1.2463). The major pair has retreated 0.85% so far this week, pursuit two consecutive weeks of gains.

Along today's economic calendar, at 12:30 Universal time the Dresser of Labor movement Statistics is to account on U.S. consumer prices. The annualized consumer inflation in the commonwealth probably accelerated to 0.6% in June, according to market expectations, from 0.1% in May. The latter has been the last-place annual inflation since Sept 2022, American Samoa gasoline prices plummeted 33.8% year-on-year.

The annualized core consumer inflation, which is stripped of prices of solid food and vigor, is expected to unhurried down to 1.1% in June from 1.2% in Crataegus oxycantha. The latter has been the lowest core inflation since Borderland 2011.

At 18:00 GMT National Reserve Board Member Lael Brainard is regular to speak up at a National Association for Business Political economy webinar with a topic "Perspectives on the Pandemic", while at 18:30 GMT Fed President for St. Louis James Bullard is expected to speak up on the U.S. economy and monetary policy during a live-streamed result at the Economic Cabaret of New York.

Bond Yield Spread

The spread between 2-year US and 2-year UK bond yields, which reflects the menstruation of funds in a short term, equaled 27.4 basis points (0.274%) as of 10:15 GMT on Tuesday, up from 26.8 cornerston points on July 13th.

Daily Pivot Levels (traditional method of figuring)

Central Swivel – 1.2590
R1 – 1.2630
R2 – 1.2706
R3 – 1.2746
R4 – 1.2785

S1 – 1.2514
S2 – 1.2474
S3 – 1.2398
S4 – 1.2322

Source: Miroslav Marinoff, a news editor at TradingPedia, is engaged with observing and reporting connected the tendencies in the Foreign Exchange Marketplace and the USA Securities market.

Source: https://www.tradingpedia.com/2020/07/14/forex-market-gbp-usd-falls-to-a-one-week-low-as-uk-annual-gdp-shrinks-more-than-expected-in-may/

Posted by: normantione2000.blogspot.com

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