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Home » News » Indices » GBPUSD threatens to fall below $1.24 ahead of UK construction PMI

US equity markets began Q2 by closing lower on Monday, albeit finishing well off session lows as a macroeconomic data deluge gave investors plenty to digest.

Accendo Markets Analyst, Mike van Dulken commented – “The Dow Jones outperformed, rallying to close only 0.1% lower as UnitedHealth led risers, while the S&P 500 closed lower as seven sectors finished weaker, led by Consumer Discretionary names. The tech-focused Nasdaq at one point reached a fresh intraday all-time high, although eventually underperformed peers, down 0.3%”

The lacklustre start to both April and the second quarter continued this Tuesday morning, with little on the agenda to perk up trading.

Spreadex Analyst Connor Campbell suggested – “The pound’s currently not looking too clever, falling 0.2% against the euro and 0.3% against the dollar. That means cable is now in danger of dipping back below $1.24, roughly a week after crossing, however briefly, the $1.26 mark. Opening 20 points above 7300, meanwhile, it wouldn’t take a lot for the FTSE to hit the same intraday lows it struck last Monday – all it would take is a slightly negative turn (i.e. a sterling recovery) and it could find itself back in the 7250s.”

“The main focus for both index and currency this morning will be the construction PMI. After yesterday’s disappointing manufacturing reading, investors will want reassurance that the gradual slowdown of the UK economy isn’t plaguing every sector.”

Other data in focus today includes Eurozone Retail Sales, forecast back to growth in February, having been negative since October. Annually however, growth is likely to edge back to its slowest since September.

ADS Securities Analyst Konstantinos Anthis noted – “Today traders are eager to hear from ECB President Mario Draghi who will be speaking at the launch of the new 50 Euros banknote in Frankfurt. It is clear that Euro traders are looking for a fresh catalyst to inject some volatility in the Euro, which has been treading water lacking direction.”

This article is not investment advice. Investors should do their own research or consult a professional advisor.

Michael Morton

Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.

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