GBP[1]/USD[2] - Prices, Charts, and Analysis
- Sterling holding support for now.
- UK PMIs – business activity rises, optimism slips.
Business activity in the UK picked up sharply in March as pandemic restrictions were removed but optimism for the months ahead fell to a 17-month low as the war in Ukraine and economic uncertainty weighed on domestic confidence.
According to Tim Moore, economics director at survey compiler S&P[3] Global, ‘UK economic growth continued to surge higher in March after an Omicron-induced slowdown at the turn of the year. Service sector companies led the way as business activity expanded at the fastest pace since the post-lockdown recovery seen last May. There were widespread reports citing a boost to business and consumer spending from the roll back of pandemic restrictions. Survey respondents commented on stronger demand arising from the return to offices, alongside a resurgence in the travel, leisure and entertainment sectors’.
Mr. Moore added, ‘However, the near-term growth outlook weakened in March, with optimism dropping to its lowest since October 2020 as the war in Ukraine and global inflation concerns took a considerable toll on business sentiment’.
For all market-moving economic data and events, refer to the DailyFX calendar[4]
The US dollar[5] remains firm within a multi-week range and is looking to test resistance. The greenback has bounced strongly off support four times in the last month and has now reclaimed the short-dated 20-day sma. If the dollar can keep above here a fresh retest of the 99.74 double-high is likely in the near term.
US Dollar (DXY) Daily Price Chart – April 5, 2022
GBP/USD[6] remains pointed lower with a series of lower highs and lower lows prominent since mid-2021. The pair did break
