GBP/USD: On a 5-day winning streak ahead of UK’s political debate
|- GBP/USD stays on the buyers’ list amid increasing Brexit optimism.
- Rising odds of the Tory leadership, hardships for other political parties favor the Cable.
- ITV’s political debate will offer another stage to British lawmakers after the CBI event.
Signs of political stability and a successful Brexit keep the GBP/USD pair bulls’ favorite as it takes the bids to 1.2950 while heading into the London open on Tuesday.
Other than sustained support for the Tory leadership in December election, as portrayed by major polls, the recent verdict to ban Liberal Democrats (LibDems) and the Scottish National Party (SNP) form the ITV’s cross-party political debate also speaks louder for the Conservatives’ fame in the United Kingdom (UK).
The Cable recently benefited from the Brexit Party’s reduction of candidates while also ignoring the Bank of England’s (BOE) dovish bias.
Even so, claims surrounding the Prime Minister’s (PM) refrain to release document concerning the Russian meddling in Brexit referendum and a stop to cuts corporate tax are highly criticized by the British locals, including Tories. Also, the European Union’s (EU) steady view to not change the Brexit deal gains less of market attention. During his latest appearance at the Confederation Board of Industries (CBI) speech, the UK PM Johnson keep praising the Brexit deal whereas others stayed on the alternatives.
While ITV’s debate and trade/political headlines concerning the United States (US) and China could keep entertaining markets, November month CBI Industrial Trends Survey data from the UK, the US Building Permits, Housing Starts and speech from the President of the Federal Reserve Bank of New York, John C. Williams, will occupy today’s economic calendar.
“Markets are looking for CBI industrial orders to rise from October's multi-year low of -37 to -30 in November. We think that risks lie toward a larger gain, as the October survey likely didn't capture the improvement in sentiment as perceived odds of a no-deal Brexit were reduced. The market expects housing starts to have rebounded to 1,320k in October, reflecting a firm 5.1% m/m jump. This would follow a notable -9.4% tumble in September, which was largely driven by a sharp -28.2% m/m contraction in the volatile multifamily segment,” says TD Securities.
Technical Analysis
Unless breaking the range between 1.2770 and 1.3015, prices are less likely to offer any large moves.
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