01.03.2019: Traders gaining from GBP deals (EUR, USD, GBP)

01.03.2019: Traders gaining from GBP deals (EUR, USD, GBP)


Traders were selling the US dollar for the
most part of the week. However, today traders are opening massive
long deals on the US currency, betting on decent profits. Yesterday the market welcomed the news that
the US GDP data revealed a better than expected annual growth rate. This revived investor optimism about the US
dollar. As a result, the euro/dollar pair retreated
to the level where it traded earlier this week. The pair is likely to close the week at the
current level of 1.1360. Today investors found out about positive changes
in the eurozone’s economy. Germany provided fresh evidence of robust
consumer activity. Retail sales expanded 3.3% in January month-on-month. Besides, retail sales in Germany increased
2.6% on a yearly basis. The domestic labor market also signals positive
changes. Today the Eurostat agency reported inflation
data for the whole eurozone. Consumer inflation accelerated to 1.5% in
February in line with the consensus. On the other hand, the core inflation rate
that excludes volatile prices of energy and food edged down in February, undershooting
the forecast. PMI data from Markit Economics still arouses
concerns among investors. On the one hand, the eurozone’s manufacturing
PMI came in slightly better than expected. However, the print of 49.3 has been the lowest
value since June 2013 that confirms a downturn in the manufacturing sector. The UK factory sector displayed much stronger
performance. The PMI is measured at 52 points in February
in line with economists’ expectations. Meanwhile, the pound/dollar pair is trading
with a predictable dynamic. The pair is now heading downward to 1.3220
amid the broad-based strength of the greenback. Nevertheless, the sterling is on track to
finish this trading week with gains.

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