This week would be quite heavy for the British pound, as there are many high-impact economic indicators due for the U.K. economy, including the Construction PMI, Services PMI, Asset Purchase Facility, and Manufacturing production.
The Pound already had a great start on Monday as the manufacturing sector of the economy expanded massively for the past month, after which it has entered the bullish zone instantly.
Now the upcoming data of Construction and specially the Services PMI could be a do or die for the pair as the services sector contributes to a larger chunk of the economy. Traders are suggested to go long on the pair as long as it is above 1.5529.
The boost from the good manufacturing PMI of China and a really amazing growth figure of 10.8% of building approvals in the Australian economy in August helped boost the pair to cross the 0.8979 critical resistance level after which it closed above it on Monday.
Just like the pound, the Aussie also has a number of critical economic indicators to follow in upcoming days including the retail sales, interest rate, quarterly GDP, and trade balance.
As we all know that the Australian dollar has been under immense pressure for the past 3 months, where good fundamentals in August did allow some bulls to enter the market but that couldn’t sustain for long. However, this week’s fundamentals would surely clarify things for the pair to a great extent.
As mentioned earlier in our previous reports that due to political situations and the war-like crisis in Syria and Egypt, the U.S. dollar may get stronger and the stock market may fall, and so it has happened so far.
The greenback has a historical trend that by the start of fall season it starts getting stronger till the year end, and may be traders are also taking advantage of this psychological perception as well where the impact we have seen so far is inflated.
The fundamentals to follow in coming days this week include the ISM Manufacturing and ISM Non-manufacturing PMI, Beige book, unemployment claims, and finally non-farm payrolls and unemployment rate on Friday.
A mixed movement in the market may be seen this week because investors may not try entering the market on each and every news because each day this week, we have very important fundamentals due plus the U.S. military forces could attack Syria at any time.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org