The GBPUSD was pressured last night despite a strong bullish presence yesterday. The pair dipped below 1.2800 on the latest YOUGOV polling data which have shifted to show the conservatives losing ground as they are indicated to now have 16 seat less than is required for a majority. The polling data is regarded as having a large margin for error and traders will be sensitive to this with the GBP suffering as uncertainty grows.
Looking ahead we have key data release out of Canada and the USA, as follows:
Canada will release its GDP m/m figure which, with the recent pressure felt by the CAD due to crude oil prices sliding, could be a game changer as it will identify by how much the Canadian economy has grown in the last month. The figure represents the inflation-adjusted value of all goods and services produced by the economy and a better than expected result will see the CAD firm up as buyers resurface while a worse than expected release will see the CAD sold off as trader’s price in the worsening economic conditions.
Out of the US we first have the release of the Chicago PMI release which along with today’s other releases will serve as a guide as to whether the USD should move higher or lower. A better than expected releases will see the USD move higher going forward while worse than expected releases will see the USD sold off as trader’s price in the less optimistic release.
Finally, the US Pending Home Sales m/m figure will indicate the change in the number of existing homes due to be sold but still awaiting the closing transactions and is regarded as a leading indicator of economic health because of the ripple affect a new home purchase has form renovations to furnishing and the financing side. A better than expected release implies an improvement in the economy which will see the USD strengthen, while a worse than expected release will imply a worsening of economic conditions which will result in a sell off of the USD.