Tuesday, June 3, 2014

GBP/USD 6/3/2014

GBP/USD is steady on Tuesday, as the pair trades in the mid-1.67 range late in the European session. On the release front, British Construction PMI slipped in April, dropping to a seven-month low. Nationwide HPI dropped to 0.7% in May, matching the forecast. In the US, there are just three releases, highlighted by Factory Orders.
It’s not often that a key indicator drops and magically recovers a day later. However, this was the case with ISM Manufacturing PMI. The well-respected ISM Business Survey Committee reported on Monday that the key index had softened in May, but has since corrected its reading. The index actually improved to 55.4 points in May, up from 54.9 points a month earlier. As well, Final Manufacturing PMI and ISM Manufacturing Prices improved. This points to an expanding manufacturing sector, which is good news for the recovery. The markets will be hoping for more good news from today’s highlight, Factory Orders.