Weak UK Consumer Credit Might Weigh On GBPUSD
GBPUSD traded lower and looks set for further losses in the near term if sellers gain control.
Chinese HSBC Manufacturing Purchasing Managers Index (PMI) released by the Markit Economics posted a rise from the last reading of 49.7 to 50.7.
Japanese Vehicle sales released by the Japan Automobile Manufacturers Association came in at -14.2%, less than the last reading of -18.9%.
Spanish Purchasing Managers Index (PMI) Manufacturing released by Markit Economics registered a reading of 54.2 in February 2015 whereas the market was expecting it be 55.1.
Swiss SVME Manufacturing Purchasing Managers Index (PMI) came in at 47.3 in February 2015, down from the last reading of 48.2.
Italian manufacturing PMI registered a rise from 49.9 to 51.9 in February 2015.
France manufacturing PMI declined from 49.2 to 47.6.
German manufacturing PMI posted a nice gain and jumped from 50.9 to 51.1 in February 2015.
Euro Zone manufacturing PMI stayed at 51.0.
Italian Unemployment Rate released by the National Institute of Statistics posted a decline from the last revised reading of 12.7% to 12.6% in January 2015.
UK Consumer Credit released by the Bank of England registered a reading of £0.817B whereas the market was expecting it to stay around £0.900B, which weighed on the GBPUSD pair.
Euro Zone Manufacturing PMI
Earlier today during the London session, the Euro zone Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics. The forecast was slated for a rise from the last reading of 51.0 to 51.1 in February 2015. This was a bit on the lower side, but we cannot deny the fact that it stayed in the positive zone. The report mentioned that the rate of expansion in manufacturing production stayed around the same zone as of the last month, despite the fact that there was a slight improvement in growth of new order.
Furthermore, the rate of increase in total new business remained moderate and kind of affected the conditions. The EURUSD pair enjoyed the release and was seen trading higher after the release. The Chief Economist at Markit, Chris Williamson mentioned in the report that the “Euro Zone manufacturing sector barely expanded in February, highlighting the malaise that still hangs over the region’s goods-producing economy as a whole”.
German Manufacturing PMI
The Germany Manufacturing Purchasing Managers Index was also released around the same time. The forecast was slated for no change from the last reading of 50.9 in February 2015. However, the outcome was on the positive side, as the German manufacturing PMI jumped by 0.2 points to 51.1. This was positive, and helped the EURUSD pair to some extent in the near term.
Technical Outlook – Euro
The Euro after trading as low as 1.1160 traded back higher. After the releases in the Euro zone, the EURUSD pair climbed back sharply and even closed above the 1.1200 resistance area. On the upside, the next hurdle lies around the 1.1240 level where the Euro sellers are likely to appear in the short term.
UK Nationwide Housing Prices highlighting the value of the houses prices in UK and indicate current movements in the housing market posted an increase of 1% in April, compared to the preceding month.
US dollar continued to weaken against a few currencies and managed to recover some ground against currencies like the Euro and the British Pound
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