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Forex: GBP/USD subdued below opening price

FXstreet.com (Barcelona) - The GBP/USD is down today on the concerning GDP figure in China and fell from 1.5385 but was supported by 1.5305/10. Since then, upside attempts have been stalling around the opening price, at 1.5340 on the European session and 1.5345 on the NY opening. Once the American session opened and US data released, the pair eased back to 1.5320.

The NY empire state manufacturing index also disappointed, down from 9.74 to 3.05 in April, below 7.00 consensus. Having come in at $25.7B in January, the February release of US net tic flows disappointed investors at $-17.8B. Market consensus was pointing to $41.3B. Total Net TIC flows eased from $116.8B (revised from $110.9B) to $53.6B.

The market priced in the disappointing release of China GDP data, easing from 7.9% to 7.7% (consensus of 8.0%) in Q1 (YoY), while QoQ data came in at 1.6% (consensus of 1.9%). Also, Chinese urban investment (down from 21.2% to 20.9% vs 21.3% consensus) and industrial production (down from 9.9% to 8.9% vs 10% consensus) in March didn’t help the mood, but China retail sales rose from 12.3% to 12.6%, against expectations of 12.5%.

“The recent break below 1.5340 signals, that a top is in place at 1.5410 high and the pair has entered a corrective phase towards 1.5240 and probably to 1.5180 before next leg upwards, to 1.5505. The intraday bias is negative for 1.5240 with a crucial level at 1.5380”, wrote Deltastock.com analyst Stoyan Mihaylov.

American equity markets fall along with commodities

The US stock market experienced a negative opening Monday, having started off the week in the red. In the United States, the NY Empire State Manufacturing Index came in at 3.05 in April, against expectations of 6.50. Moreover, the Net Long-term TIC Flows (February) yielded a result of $-17.8B, against estimates of $41.3B.
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