Sterling Rises Before Data On Service Sector Released

[Forex7]

The Pound rises against US Dollar today (05/12, 03.3 GMT). The GBP/USD opened at 1.6100 in early trading (00:00 GMT), and rises + 10 pips or about + 0.06 % at 1.61101.

 

The positive sentiment toward Sterling is seems to be increasing , as the Markit is scheduled to report the data of the level of a diffusion index based on surveyed purchasing managers in the services industry, in November.

 

The Services PMI is estimated to increase to 51.1 from previous period of 50.6. The market drives the currency to rise as an early response.

 

Vibiz Consulting Analyst said normal range of GBP/USD is estimated to have the support level at 1.5961 and resistance level at 1.6061. Meawhile Chancellor George Osborne will announce today that he is forcing a fresh spending squeeze on cash-strapped Whitehall departments to fund £5bn worth of investment in schools, transport and science over the next three years.

 

The Treasury is keen to be seen to heed the warning of the International Monetary Fund that cuts should be focused on day-to-day spending, and the government should boost infrastructure projects that could deliver a long-term return to the economy.

 

But still, criticism over Chancellor George Osborne is mounting. One of it said that work has not yet begun on a single one of the half dozen major road schemes published by George Osborne. About £1bn of regional growth fund money has been "allocated" but is now being studied by lawyers before it is actually handed out to help businesses in more deprived areas.

 

Up to £21bn of new private sector investment was announced, but there is no word on £1bn earmarked for the regulated industries and of £20bn that had been expected to be raised or leveraged by pension funds, just £700m has been committed and not a penny has yet been spent.