- GBP / USD is back above the 1.3900 level after a choppy trading period.
- The USD and GBP are performing well against the rest of their G10 counterparts on Tuesday.
So far it has been a rocking session for the pound, the pair has returned from the session lows around 1.3870 to above the 1.3900 level again in recent trading, although it is still somewhat far from the Asian session highs. Pacific just above 1.3950. As things are right now, with the GBP/USD Trading just above 1.3900, the pair is flat on the day.
Driving the day
In terms of performance versus the rest of the G10 on Tuesday, GBP and USD are the best performers. The US dollar got a boost Tuesday with the release of a much stronger-than-anticipated NY Empire State Manufacturing Index poll (the main number jumped to 12.1 in February against expectations of a much more modest rise to 6.0 from 3.5 in January). The dollar index received a notable boost from the data, helping to launch it back above 90.50.
The strong survey bodes well for the Philadelphia Fed Manufacturing Survey and the Markit PMI report to be released on Thursday and Friday, respectively, this week. With Covid-19 infection rates in the US falling sharply and precipitating a new reopening, the impact of the January stimulus beginning to be felt and expectations of further fiscal stimulus in the future, US economic data. The US will improve in the coming months.
Regarding the British pound, the news flow has been light on Tuesday, but it appears that the currency continues to be supported by the excellent progress of the launch of the vaccination in the country (more than 15.5 million now vaccinated), as well as the decrease persistent Covid-19 in the country. The focus is now on how aggressively the country will begin to reopen its economy, assuming the vaccines work and the reopening is not followed by a sharp increase in Covid-19 infections.
Technical levels
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