On Tuesday afternoon, the GBP/USD pair was under pressure a little bit, but it wasn’t enough for a new wave а sales.
The British Pound is trading subtly on Tuesday. The sales in the GBP/USD pair are limited; bears are moving the price with no volumes. The current quote for the instrument is 1.3136.
Today’s statistics indicated that the number of approved mortgage applications in June was 40,1 thousand against expected number of 40,2 thousand. So far, the real estate market seems quite stable, although the statistics on mortgage published today is the lowest over the last 15 months.
The Bank of England representative, Mr. Martin Weale, noticed that he is in favor of extension of QE. Earlier, he several times declare for keeping hardline approach to the fiscal policy, and now his comments are dramatically opposite. It may happen that the politician’s views are based on the PMI data in the United Kingdom published last Friday.
I remind you that the previous report on the private sector activity in the UK in July showed that the indicator fell towards the lows of early 2009. The PMI was 47.7 points against 52.4 points in June. We’re talking about a compound indicator. If we split the PMI into sectors, then the service industry in July decreased up to 47.4 points, and the manufacturing sector – up to 49.1 points. Everything that is under the “wave breaker” of 50 points usually indicates that there negative tendencies in the economy.
However, it would seem that this data is not enough for bears to get more active. Probably, investors may prefer to wait for signals from the USA FOMC meeting and start acting later.
RoboForex Analytical Department
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