Cable shows its able – GBP/USD extends gains


The fall of the dollar after the terrible US manufacturing PMI continues in a determined fashion. The reduced chances of QE tapering push the dollar lower.

GBP/USD broke above the 1.53 level and already peaked at 1.5374 before making a limited retreat to 1.5354 at the time of writing.

In the case of the British pound, a parallel figure in the UK looks much better for a change: manufacturing PMI in the UK switched from contraction to growth, making the opposite route that the US did.

The series of PMI releases in the UK continues. Tomorrow its the turn of construction. See how to trade the construction PMI with GBP/USD.

The next event is services PMI – this is the most important sector. The rate decision on Thursday is widely expected to be a non-event, as it is the last meeting led by outgoing governor Mervyn King.

For more on the pound, see the GBP/USD forecast. Here is cable in motion:

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.