Under the auspice of strong austerity measures and the promise of more to come from the ruling government coalition, the GBP has found the ability to gain against the USD. This does not mean that all obstacles have been overcome – far from it – but the approach taken thus far by the government has been enough to calm investors. However, the U.K. is still very much in the midst of a less than promising economic whirlwind. Yesterday the Services PMI was released and turned in a reading of 54.4, which was below the estimate of 55.1. The Nationwide Consumer Confidence publication is listed as being tentatively on the schedule for today and it carries an anticipated mark of 64, which would be less the previous outcome of 65. Sterling finds itself trading at the higher reaches of what has been a weak trend versus the USD. Going into today’s session traders will have an opportunity to test its range as sentiment remains a fragile avenue.
Written by bforex.com
