05, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

British pound this week was in a packed schedule of events, where highlights include the PMI and the official rate of the Bank of England.

Last week the disappointing data from the U.S. and the UK. came. In the UK, the current account deficit has increased, while for the U.S. this week has been particularly bad, with bad data in a wide range of sectors, including housing and employment. GBP/USD fell, but managed to recover by the end of the week.

Manufacturing PMI rose from 47.9 to 48.3. However a key indicator is below the 50-border division between "good" and "bad." Net lending to individuals is 1.5 billion pounds, and the forecast is 0.9 billion pounds.

M4 money supply decreased by 0.5%, disappointing markets which had expected 1.1% increase. Mortgage approvals fell to 52 thousand, five-month low.