Here is the key factor to keep in mind today for British Pound trades:
- British CBI Report: Today’s trading session is very light when it comes to economic reports which means two things; number one, you can enjoy a more pure technical trading day with a lot less interference by fundamental data and number two, the little reports which will be released will have a much greater impact right after the releases than they would have usually had. The British Pound enjoyed a strong rally and many are waiting for a reason to take a few pips off the table. The only economic report released today out of the UK is the CBI report. Economists expect the CBI Business Optimism to rise to 19 in April. Forex traders can compare this to the 15 reported in March. CBI Trends Total Orders are expected to come in at 4 in April and forex traders can compare this to the 0 reported in March. Should this be confirmed it will be a strong bullish fundamental signal for the British Pound. Those who are looking for a fundamental reason to take profits in the GBPUSD may find it in the CBI Trends Selling Prices index for April which is expected to come in at 2. This can be compared to the 4 reported in March and indicates that inflationary pressures are decreasing which can allow the Bank of England to keep interest rates unchanged.
Here are the key factors to keep in mind today for US Dollar trades:
- US Markit Composite PMI/Markit Services PMI: Economists expect the US Markit Composite PMI for April to slow down to 59.0 while the more important US Markit Services PMI is expected to slow down to 58.8. Forex traders should compare this to the 59.2 reported in March for the US Markit Composite PMI as well as the 59.2 reported for the US Markit Services PMI. The expected slowdown would be a bearish trading signal from the fundamental data. The US economy depends heavily on its service sector which account for approximately two-thirds of all economic output. Despite the expected slowdown a level of 58.8 does signal a solid performance and forex traders may look past this data point.
- Dallas Fed Manufacturing Activity Index: The manufacturing sector covered by the Dallas Federal Reserve has suffered a big blow in March when the Dallas Fed Manufacturing Activity Index was reported at -17.4. Expectations for the Dallas Fed Manufacturing Activity Index in April are for a level of -12.0. While this marks an improvement over March it still shows an average monthly level of -14.7 which is a terrible performance. This could ripple through other regional manufacturing sectors as well.
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
