ICICI Direct, The pound depreciated by 0.46% on Wednesday amid weak economic data. UK Construction PMI fell to a four-month low of 56.4 in May from 58.2 in the prior month.
June 09, 2022 / 09:43 AM IST
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ICICI Direct’s currency report on GBPINR
The pound depreciated by 0.46% on Wednesday amid weak economic data. UK Construction PMI fell to a four-month low of 56.4 in May from 58.2 in the prior month. The deceleration was marked by a loss of momentum in the residential building category, dragging housing activity to its weakest in two years. However, sharp downside was cushioned by higher UK government bond yields • The pound is expected to trade with a negative bias today amid strong dollar and UK political turmoil. British Prime Minister Boris Johnson survived the no confidence vote on Monday, at a much smaller margin than expected. Given that many MPs from within the Conservative Party voted against him, the development has raised uncertainty over Johnson’s future as the UK Prime Minister. We expect GBPINR to trade in the range of 97.90 to 97.40.
Intra-day strategy
| GBPINR June futures contract (NSE) | |
| Sell GBPINR in the range of 97.75 – 97.77 | |
| Target: 97.50 | Stoploss: 97.90 |
| Support: 97.50 – 97.40 | Resistance: 97.90 – 98.00 |
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