The British pound strengthened against the other major currencies ahead of European session on Tuesday, as traders await the U.K. second quarter GDP data, due shortly.
The Office for National Statistics is set to publish U.K. quarterly national accounts for the second quarter and the index of services for May at 4:30 am ET today. The U.K. economy is expected to grow 0.7 percent sequentially after rising 0.4 percent a quarter ago.
Also, the U.K. index of services is forecast to expand 0.3 percent on a monthly basis in May following a 0.2 percent rise in April.
The focus also remains on the two-day U.S. Federal Reserve meeting that begins later in the day. Analysts do not expect the Fed to raise interest rates before September but traders will be scrutinizing the statement for any hints about the timing of the first rate hike.
Monday,the pound showed mixed trading against its major rivals. While the pound rose against the U.S. dollar and the Swiss franc, it fell against the euro and the yen.
Ahead of the European session, the pound rose to a 6-day high of 1.5007 against the Swiss franc and a 5-day high of 192.51 against the yen, from early lows of 1.4946 and 191.44, respectively. If the pound extends its uptrend, it is likely to find resistance around 1.51 against the franc and 195.00 against the yen.
Against the euro and the U.S. dollar, the pound edged up to 0.7104 and 1.5579, from early lows of 0.7129 and 1.5552, respectively. The pound may test resistance near 0.69 against the euro and 1.57 against the greenback.
Looking ahead, the first estimate of the U.K. GDP for the second quarter and the U.K. index of services for May is due to be released at 4:30 am ET.
In the New York session, Canada industrial product and raw materials price indices for June and U.S. S&P/Case-Shiller home price index for May, Markit’s preliminary U.S. service sector PMI report for July and U.S. consumer confidence for July are slated for release.
The material has been provided by InstaForex Company – www.instaforex.com