GBP / USD
The British pound took advantage of the confusion in the European market and gained 70 points this morning due to profit taking and easing of pressure of sellers. Speculators of buying the pound take caution on yesterday’s unimpressed economic data for the United States. Industrial production increased by 0.7% against expectations of 0.6%, but capacity utilization remained at 78.0%. The number of bookings of new houses in April showed a decrease from 1.34 million to 1.29 million.
Confusion in the dollar caused North Korea’s decision to cancel the meeting between Kim Jong-un and Donald Trump in Singapore scheduled on June 12, if its does not see the reciprocal positive plans from the US in the nuclear disarmament process of the DPRK.
Today in the United States, the number of applications for unemployment benefits is 216 thousand compared to 211 thousand a week earlier. The business activity index in the manufacturing sector of Philadelphia in May is expected to decrease from 23.2 to 21.1, which may contribute to deepening the correction. We are expecting the pound at 1.3625.
* The presented market analysis is informative and does not constitute a guide to the transaction.