the release of UK
manufacturing data which showed a decline of 0.6% from April to May,
which was also the second consecutive decline we’ve seen month-on-month
losses. What this has done now is to make the UK more reliant on its services sector which then becomes the concern of the BoE and UK Government. On the other hand, industrial figures came in better than expected – mostly due to oil and gas performances. We also saw the NIESR growth estimate print at 0.7% for the 3 months leading up to June which was higher than the 0.4% anticipated.
Overall, GBP dropped against its two major counterparts yesterday and seems to be doing the same this morning – this is mainly due to weak manufacturing data, the problems in/with Greece and the dollar being an apparent safe haven. Today is somewhat notable for UK announcements as the government releases the first Tory-only budget in almost 20 years.
On the mainland, Greece continued to cause a massive headache for all euro-concerned but ultimately ended up against the pound when markets closed. The embattled country has yet to offer up any real solutions to its creditors which seems to make the likelihood of a Grexit all the more likely. Contagion is the big worry if this does occur – the worry the other Eurozone countries that are facing austerity will simply turn around and say they’ve had enough too and reject bailout terms and conditions. This has far reaching consequences for the possible future of the single currency.
In the US, the safe haven appeal of the US Dollar has seen it hit multi-week high.
so fundamental long term is bearish
so the recomendation for gbp/usd is bearish.we will waiting for technical sell and ignore buying signal for gbp/usd
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