New Highs Achieved for Sterling-Dollar Pair

On Thursday 13 April 2017, the GBPUSD pair traded at 1.2575 before reversing. The run-up to the Easter Weekend trading session proved to be an auspicious period for the GBP, with modest gains recorded. For the most part, Wall Street bourses racked up multi-day losses as bellicose activity elevated investor concerns and a risk-off approach was adopted to equities markets. The US dollar index is trading at 100.58, up slightly (Thursday 13 April), but trading lower over a 5-day spell. The US Dollar index reflects a bearish perception of the greenback in recent days as ‘Trumpflation’ hopes fade amid gridlock and political manoeuvring in Washington DC.

Several important economic indicators should be taken into consideration for binary options currency traders of the cable from the USD perspective

  • The inflation rate in the US is at 2.4% for March (year-on-year) from 2.7% in February (year-on-year). This results in bearish sentiment for the USD and drives up the GBP/USD pair.

  • Retail sales in the US are down 0.2% for the month of March.The month-on-month decline is a slight improvement from the -0.3% in February 2017, but hardly regarded as a positive factor for the USD.

    • From the other side, here are some important GBP indicators to factor in

    For the week ending April 13, 2017 the GBPUSD pair made modest gains. At the close of the trading session, the cable was up at 1.2517. For the week ahead, there are few economic indicators to speak of, but UK retail sales on Friday April 21, 2017 are an important indicator.  The GBP moved up against the greenback last week on the back of better-than-expected wage growth. Consumer Price Index (CPI) data also improved and this was in sharp contrast to US data which disappointed analysts. For the upcoming week, we could see further upside momentum for the GBPUSD pair with the following events taking place later this coming week:

    Print Friendly, PDF & Email

    Related Posts