Pound hits ten-week high on upbeat UK PMI data
2023.11.23 20:35
The currency pair reached a ten-week peak, approaching the 1.2550 mark, buoyed by unexpectedly strong UK Purchasing Managers’ Index (PMI) data. The latest figures released showed both the Services and Composite indices indicating economic expansion with readings of 50.5 and 50.1 respectively, surpassing forecasts that predicted no change from previous numbers.
Market analysts are now turning their attention to the upcoming US Manufacturing and Services PMIs as trading resumes after the Thanksgiving holiday. There is a consensus that the Manufacturing index might show contraction with a prediction of 49.8, while Services are expected to experience a slight dip to 50.3. These projections come as market participants return in reduced numbers due to shortened trading hours.
In technical analysis, the GBP/USD pair shows that resistance is forming just below the recent highs, around the level of 1.2575. Meanwhile, support is taking shape near the recent lows in the vicinity of 1.2400. Investors and traders are closely monitoring these levels as they could indicate future movements in the currency pair’s value.
As global markets await the release of US PMI data, the strength of the pound against the dollar serves as an indicator of investor sentiment towards the economic outlook of both nations. The positive UK data has provided some optimism about the resilience of the British economy amid global economic challenges.
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