Friday, June 20, 2014

GBP/USD 6/20

GBP/USD is showing little activity  as the pair continues to trade in the mid-1.70 range late in the European session. On the release front, British Public Sector Net Borrowing hit a six-month high, as the deficit swelled in May. In the US, markets are open on Friday, but there are no US economic releases on the calendar, so we can expect thin trading of GBP/USD. The British pound pushed above the key 1.70 level on Thursday, gaining on strong UK manufacturing numbers. CBI Industrial Order Expectations jumped to 11 points, easily beating the forecast of 3 points. It was the indicator’s best showing since last November, and points to more robust UK manufacturing sector. Retail Sales, the primary gauge of consumer spending, was unable to keep pace. The indicator came in with a weak reading of -0.5%, its first decline since January. The pound managed to shrug off this poor reading since it matched the forecast.