The last day of the current trading week promises to be stressful enough for the British currency. Traders expect to release statistics on business investment and GDP for the 1st quarter. Data on the volume of industrial production and trade for March will also be released later in the morning.
According to forecasts, the country's GDP growth for the 1st quarter will be 0.5% against previous data of 0.2%. On an annualized basis - 1.8% against previous data of 1.4%. Forecasts for industrial production in the UK are not so bright - 0.1% against previous figures of 0.6% on a monthly basis. Even worse are the forecasts for industrial production in the manufacturing industry - only 0.2% compared with the previous 0.9%.
While we expect GDP to be a key factor in GBP behavior, the impact of industry data should also not be underestimated.
Outside of the fundamental economy figures, the markets will continue to monitor developments in the British Parliament. While Theresa May hopes to make a deal before the European Parliament elections, the opposition continues to insist on holding a new referendum on Brexit.
At the time of this writing, the British currency is trading in a flat at $ 1.3014 against the US dollar.
Trading recommendations for the pair GBPUSD: Sell. Entry point - 1.3020.
Take Profit - 1, 3006.
Stop Loss - 1, 3045.
News from the ‘Chinese Front will continue to exert pressure on the US dollar. On the eve, the main US stock indexes finished the day in the red against the background of another statement by President Trump regarding the current state of trade relations with China.
The Dow Jones Industrial Average in the red by 0.54%, to 25,828.36 points, the NASDAQ Index dropped by 0.41% to 7,910.59 points.
Yesterday, Donald Trump threatened to introduce additional duties on goods from China totaling $ 325 billion.
As an excuse for his steps, the American leader quoted the former head of the organization the United States International Trade Commission (USITS), Peter Morici, where he claims that the US economy has increased after the introduction of tariffs:
“The reality is, with the Tariffs, the economy has grown more rapidly in the United States and much more slowly in China.” Peter Morici, Former Chief Economist, USITC
— Donald J. Trump (@realDonaldTrump) may 8 2019
Forex trading recommendations:
EURUSD: Buy. Entry point – 1, 1227. Take Profit – 1, 1243. Stop Loss – 1, 1199.
USDCHF: Buy. Entry point – 1, 0153. Take Profit – 1, 0165. Stop Loss – 1, 0132.
GBPCHF:
Sell. Entry point – 1, 3213. Take Profit – 1, 3197. Stop Loss – 1, 3241.
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