Market Foсus

The strongest news on Tuesday, 05/12/2017, was the Reserve Bank of Australia’s decision on the interest rate. In anticipation of the decision of the RBA, the Australian strengthened its position. As expected, the RBA kept the rate at 1.50%, which continues to provide some support to the Australian.

Later, attention should be focused on data on the index of business activity in the services sector of Great Britain. The index of business activity in the services sector measures the level of activity of purchasing managers in the services sector and indicates well-being in this sector of the country’s economy. The service sector is the leading sector of the UK economy and accounts for 3/4 of GDP.

According to the forecast, the index of business activity in the services sector in November will fall to 55.0, against 55.6 in October. If the data are released within the forecast, the pound will be under slight pressure, but it should not be expected to drop sharply, as the value of the indicator above the level of 50 indicates an expansion in the services sector. In the event that the change in the indicator is within 5% or more, one should expect the movement on the GBP/USD pair within 50 points.

Alexander Sivtsov