The Great Britain Pound rose slightly against the dollar after a report from GFK showed that the consumer confidence rose in March. The data showed that the confidence index rose three points to negative seven in the month. At the same time, wages increased slightly despite the ongoing uncertainties relating to Brexit and the political issues this has caused.
The consumer confidence number is one of the most closely watched number because it significant part in the market. Highly confident consumers tend to be more optimistic about their careers. As such, they are more likely to spend money. They are likely to buy more cars, move to bigger houses, and spend more on discretionary spending. Part of the reason for increased optimism is the data released early this month that showed that wages rose in the fastest pace in two and a half years.
The confidence data came a few hours before the country releases the final reading of Q4 GDP numbers. Traders expect that the economy grew by 0.4% in the quarter and at an annualized rate of 1.4%.
The cable is currently trading at 1.4080, which is a low from the previously-made highs. The double exponential moving average is headed lower and the pair is trying to break an important monthly support. This could continue but traders should wait for the GDP data before initiating positions.