Good and bad news | 04 October 2021

04 October 2021, GBP/USD

Good and bad news

GBPUSD trading plan:

Supply chain delays, slower new order growth and rising material and labour shortages all constrained the UK manufacturing sector in September. IHS Markit/CIPS Purchasing Managers’ Index fell to a seven-month low. Production schedules were disrupted by a combination of input shortages, longer supplier lead times and capacity constraints. Average vendor lead times increased to one of the greatest extents in the survey history, amid reports of delays to air, land and sea freight, staff shortages at vendors, COVID-19 and Brexit disruptions, a lack of delivery drivers and port delays. This is a negative signal for the British currency. A bullish rally in the oil market will have a negative impact on the value of the US currency, since assets have an inverse correlation. Oil is finding support as a surge in natural gas prices globally prompts power producers to move away from gas.

Investment idea: range 1.3500 - 1.3600.

David Johnson
Analyst of «FreshForex» company
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