Here are the key factors to keep in mind today for British Pound trades:
- British Industrial Production: Economists expect an increase of 0.3% in industrial production for February monthly and an increase of 0.3% annualized as well. Forex traders can compare this to January’s contraction of 0.1% monthly and annualized increase of 1.3%. The monthly increase should be viewed as a bullish trading signal for the British Pound if indeed confirmed.
- British Manufacturing Production: The UK is not a big manufacturing hub, but nevertheless it is part of the British economy and forex traders should not ignore economic data. Expectations call for an increase of 0.4% in February monthly and for an annualized increase of 1.3%. Forex traders can compare this to January’s contraction of 0.5% monthly and 1.9% increase annualized. Once again the monthly turnaround, if delivered as expected, should be taken as another bullish trading signal from the fundamental side.
- British Construction Output: The final of three economic reports scheduled for release today covers the construction sector. Economists expect an increase of 2.2% in construction output in February monthly and an increase of 1.9% annualized. Forex traders can compare this with the 2.6% contraction reported in January monthly and the 3.1% contraction reported annualized. This will be a very encouraging sign and provide the biggest fundamental boost for the British Pound.
Here are the key factors to keep in mind today for US Dollar trades:
- US Import Price Index: A surge in deflation is expected in today’s US Import Price Index. Economists are looking for a contraction of 0.4% in March monthly and a drop of 10.2% annualized. Forex traders can compare this to February’s increase of 0.4% monthly and plunge of 9.4% annualized. The US Dollar will struggle to move higher with the expected surge in deflation.
- US Budget Deficit: The US financial situation is expected to worsen and the deficit to increase. Economists are looking for a budget deficit of $43.4 billion in March. Forex traders can compare this to the budget deficit of $36.9 billion which was reported in February. It appears that the US Dollar is poised for a weaker close heading into the weekend.
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.