Tuesday, August 30, 2016

U.K. purchasing managers' indexes for August

 U.K. purchasing managers' indexes for August will be key indicators for sterling, starting with the manufacturing index on Thursday, followed by construction Friday and services Monday. After very weak readings for July following the U.K. vote to leave the EU, the market is expecting a modest rebound in August. CIBC strategist Jeremy Stretch says he would look to sell GBP/USD rallies if the rebound should "prove less robust than expected," looking for a test of $1.30 once $1.3020/25 is breached. GBP/USD trades firmer for now, up 0.1% at $1.3119.