This is the GBPUSD Technical Viewpoint in The Short Term. GU is moving in a buy direction from the current level to the resistance region indicated in the above chart.
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New data prompts concerns over the health of the US private sector and sends the dollar retreating from its two-decade high.
Turns out business activity in the US is on the decline. New data from the S&P’s service sector purchasing managers’ index (PMI), which basically tracks the manufacturing and services sectors, came in at a 27-month low to contradict analyst predictions and prove that business activity reduced further in August. What does this PMI data mean for the Fed? That’s the question on everyone's lips these days, and while we can’t tell you the answer exactly, we can say that signs of a weaker economy is exactly what the Fed is looking for to tame inflation, so the general chat is that this could mean rate hikes slow their roll in September. The dollar, a popular hedge, pared back from the two-decade high it hit on Monday and sank 0.41% while yields took a lil dip in early trading on the PMI data. Investors are uneasy about the Fed’s upcoming Jackson Hole conference, which is important bc so many policymakers meet to discuss the economy and it often ends up being the moment big announcements are made.
The hawks swoop in
New data prompts concerns over the health of the US private sector and sends the dollar retreating from its two-decade high.
Turns out business activity in the US is on the decline. New data from the S&P’s service sector purchasing managers’ index (PMI), which basically tracks the manufacturing and services sectors, came in at a 27-month low to contradict analyst predictions and prove that business activity reduced further in August.
What does this PMI data mean for the Fed? That’s the question on everyone's lips these days, and while we can’t tell you the answer exactly, we can say that signs of a weaker economy is exactly what the Fed is looking for to tame inflation, so the general chat is that this could mean rate hikes slow their roll in September.
The dollar, a popular hedge, pared back from the two-decade high it hit on Monday and sank 0.41% while yields took a lil dip in early trading on the PMI data. Investors are uneasy about the Fed’s upcoming Jackson Hole conference, which is important bc so many policymakers meet to discuss the economy and it often ends up being the moment big announcements are made.