GBPUSD – Flat
GBPUSD:
The GBP/USD pair fluctuated near the 1.2550 level on Monday, commencing the festive trading week with a decline of approximately a third of a cent as market sentiment diminished.Market volumes are expected to decrease on global exchanges as investors take a break for the Christmas holidays, with global markets closed on Wednesday.
On Monday, UK gross domestic product (GDP) was below expectations, with quarterly UK third quarter GDP falling to 0.0% compared to an expected hold of 0.1%. The UK’s annual GDP also missed forecasts, coming in at 0.9% y/y, which was below the expected figure of 1.0%.US durable goods orders also missed forecasts on Monday, impacting market sentiment. In November, US durable goods orders fell to -1.1% from an expected -0.4%, fully reversing the previous month’s revised 0.8% reading.The majority of the decline in durable goods orders was attributable to automotive purchases, with the core durable goods orders (excluding autos) at -0.1%, below the forecast of 0.3%, though still above the core reading.
The market reacted moderately to the data in the early stages of the week, and this reaction is expected to intensify as market liquidity diminishes. Significant data is scheduled for release in both the US and Europe this week, with the exception of Thursday, when the initial jobless claims for the week ending December 20th are expected to be published in the US. The question of whether traders will be available to monitor the release of this data remains unanswered.
Trading recommendation: We follow the level of 1.2750, when fixing above it we consider Buy positions, when rebounding we consider Sell positions.
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