GBP/USD: Bulls attempting gains above weekly 5-MA

FXStreet (Mumbai) - Sterling bulls are working hard to take the GBP/USD pair higher, after having taken out the weekly 5-MA located at 1.4400 levels in the Asian session.

Eyes UK data

Monday’s manufacturing PMI bettered estimates, while construction PMI released yesterday missed estimates. The currency pair now awaits the UK services PMI data release. The data usually triggers a big move in the Sterling pairs, given the service sector is the largest contributor to GDP.

Across the pond, the monthly US ADP private payrolls report is due for release, which will be followed by the US ISM non-manufacturing PMI report.

GBP/USD Technical Levels

The immediate support is seen at 1.4400 (weekly 5-MA), under which the spot could target 1.4351 (23.6% of 1.5230-1.4079). A break lower would expose 1.4317 (10-DMA). On the other hand, a break above 1.4446 (previous day’s high) would open doors for 1.4476 (resistance on the hourly chart), which if taken out could see the pair test supply around 1.45 handle.

Feb 3, 2016

NZD: RBNZ forecast growth to increase to 3% - TDS

Research Team at TDS, notes that the RBNZ Gov speech suggests that on the economic outlook, the RBNZ expects forecast growth to increase to 3%, but acknowledges the risks to the NZ economy are to the downside, in particular, the difficult external environment and weak commodity prices.

BOJ’s Kuroda says “no limit to measures for monetary easing”

When the Bank of Japan decided to introduce negative rates as a measure of easing it was thought that the central bank has run out of easing tools and that it is finding it difficult to expand its asset purchase programe further. The central bank had last week decided to charge a 0.1 per cent interest on the excess reserves that the financial institutions park with it. It had however kept its existing asset-buying programe or QQE unchanged.