All quiet on the GBPUSD front with BOE in focus 2 Aug
Yesterday I was highlighting the 1.3200-50 range with decent interest around either end containing the price action, and apart from another 1.3191 low we're still ranging.
With the BOE rate decision looming large tomorrow this caution is understandable with the jury out on a potential surprise. in a rate hike or more hawkish vote. I still say this is highly unlikely but we never say never in forex and must be ready to trade the fact. It will largely depend on how myopic the MPC is becoming on inflation.
In the meantime we have UK construction PMI out this morning at 08.30 GMT.I repeat what I said yesterday about manufacturing data in that the lack of sector impact on GDP makes the data less important but try telling that to a robot.
We will therefore be waiting for their reaction first (as ever the case now on most data releases) then choose what we want to do with it after. That could mean taking profit, losses or creating new positions. As ever keep an eye on the price action. Data like this is rarely going to produce a second wave so you can fade with some comfort while we're ranging unless other prevailing scenarios rule otherwise .
Tomorow's services PMI ahead of the BOE will be closely watched by algos, traders and MPC given the sector's large (around 80%) contribution.
So for the moment trade the ranges and in EURGBP that still means 0.8925-65. We can only hope that a break of the range produces an accelerated move but good intra day jobbing pips to be had in the meantime for those interested enough.
Currently 1.3204 and 0.8955.
Carney & Co have inflation firmly in their sights