GBP/USD: Firm around 4-week high, ignores Brexit news amid UK’s political optimism
|- GBP/USD ignores the EU’s refrain to renegotiate the Brexit deal.
- UK’s Liberal Democrats and SNP are barred from taking part in ITV’s election debate.
- Second-tier data from the US and the UK could offer intermediate directives while trade, Brexit and political news can lead the momentum.
Not only increased odds of the UK PM’s success in the December election but the recent decision to keep smaller parties out of the ITV’s election debate also favor the GBP/USD pair as it trades around 1.2950 during Tuesday’s Asian session.
The United Kingdom (UK) Prime Minister (PM) Boris Johnson appreciated his Brexit deal during the speech at the Confederation Board of Industries (CBI). The event could also witness other party leaders sticking to their agenda. What was interesting to note was that the Liberal Democrats (LibDems) and the Scottish National Party (SNP) were then barred by judges from taking part in the ITV’s head to head election debate, up for publishing on November 19.
Given this shows an increase in the Tory leader’s grip over British politics, Cable traders ignored recent comments from the European Union (EU). The EU’s trade chief recently crossed wires, via Reuters, while saying that the UK PM Johnson will get only “bare bones” trade deal from Brussels next year or none at all.
On the other hand, odds are again turning down for phase one deal between the United States (US) and China. Also, Fedspeak has been repetitive while talks between the Federal Reserve Chairman Jerome Powell, US President Donald Trump and the Trade Secretary Steve Mnuchin hovered around many key issues.
Moving on, comments from the ITV debate will be the key to follow the UK politics while trade headlines could keep the US dollar (USD) traders entertained. On the economic front, November month CBI Industrial Trends Survey data for Order MoM will decorate the British calendar whereas the US Building Permits, Housing Starts and speech from the President of the Federal Reserve Bank of New York, John C. Williams will be the key to follow.
Technical Analysis
The quote is yet to cross 1.3000 round-figure, needless to mention about the previous-month high of 1.3013, which in turn portrays the pair’s weakness that can drag it to monthly lows near 1.2770 if 1.2900 breaks.
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