GBP/USD Fundamental Analysis: February 16, 2017
The GBP/USD pair has managed to regain all of its previous losses and was able to keep itself afloat as the US dollar weakened in value during yesterday’s trading sessions. The sterling pound continues to be the strongest currency as of the moment as it manages to weather the adverse effects of the USD’s activity, with a strong support barrier at 1.2400 points. The GBP has also managed to revert back all of its losses to trade at just over 1.2450 points as of the moment.
Both the UK and the US released a string of economic data yesterday. For the UK, the country’s average earnings data came in at a somewhat disappointing reading of 2.6%, but fortunately the effect of this reading was offset by a highly positive claimant count change data reading, which helped in dampening the adverse effects of the weaker data. The US retail sales data and CPI data also exceeded market expectations, and this, along with the dollar strength, caused the GBP/USD pair to drop down to 1.2400 for a short period. However, this period of slump in the currency pair was only short-lived as the strength of the USD began losing its momentum after the market finally noticed the pronounced weakness in the wages data of the US, which then helped the GBP/USD pair to get back on its feet.
There are no major news data coming from the UK for today but the US will be releasing its Manufacturing Index data and unemployment claims data, and the GBP/USD pair is expected to merely continue its ranging and consolidation for today due to the lack of possible game-changers in the currency pair.
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