The GBP grinds lower during today’s session, New Zealand Dollar also lags behind other commodity currencies. The Euro and Swiss Franc, on the other hand, are currently the strongest currencies, followed by the Dollar and the Yen. However, it should be emphasized that the Euro’s rebound is relatively sluggish, and the possibility of a selloff resuming sooner or later remains considerable.
The UK Manufacturing Purchasing Managers’ Index rose from 57.8 to 58.2 in November, higher than the expected 56.7. The PMI Service Industry Index fell from 59.1 to 58.6, which was lower than the expected 58.5. The PMI composite index fell from 57.8 to 57.7.
Jonathan Haskell, a member of the Bank of England’s Monetary Policy Committee, said in a speech that “most of the changes in inflation are caused by global factors such as imported goods and energy prices.” He expects most of the changes to be “temporary”.
“The latest data continue to show that the labor market is tight, putting upward pressure on wages, he said. From the perspective of living standards, this is certainly good news, but from the perspective of inflation, this must match the increase in productivity, so we must remain vigilant.
The expected rise in bank interest rates from emergency levels-when it occurs-is not a mistake, but a feature, he added. “This reflects the success of the policy, mainly to support the financial and health of the economy during the pandemic. And science policy.”
GBP Fell to a Fresh 2021 Low Following Broad US Dollar Strength
The GBP is trading at 1.3370 at press time, just down 0.19 percent during the New York session. The mood in the market is gloomy, with US equities indices falling. Furthermore, the CBOE Volatility Index (VIX) is climbing by about 7%, causing a sell-off in the market as investors flee to safe-haven assets, benefiting the US dollar. Furthermore, risky currencies such as the GBP, AUD, and NZD prolong their losses throughout the week.
On the macroeconomic front, the IHS Markit PMIs for November were released by the US economic docket. The Manufacturing PMI increased to 59.1, exceeding expectations of 59. The Services Index increased to 57 but fell short of the 59.1 predicted. In addition, the Richmond Fed Manufacturing Index rose to 11 in November, more than the five projected.
- Broker
- Min Deposit
- Score
- Visit Broker
- Award-winning Cryptocurrency trading platform
- $100 minimum deposit,
- FCA & Cysec regulated
- 20% welcome bonus of upto $10,000
- Minimum deposit $100
- Verify your account before the bonus is credited
- Over 100 different financial products
- Invest from as little as $10
- Same-day withdrawal is possible
- Fund Moneta Markets account with a minimum of $250
- Opt in using the form to claim your 50% deposit bonus
Learn to Trade
Never Miss A Trade Again
Signal Notification
Real-time signal notifications whenever a signal is opened, closes or Updated
Get Alerts
Immediate alerts to your email and mobile phone.
Entry Price Levels
Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.