GBP/USD pulls away from weekly highs, trades sideways near 1.2900
|- YouGov MRP Poll projects Tory win with a majority of 68 seats
- US Dollar Index stays above 98.30 after Wednesday's data dump.
- Coming on Friday: Consumer Credit and Net Lending to Individuals data from UK.
The GBP/USD pair climbed to its highest level in a week at 1.2951 during the Asian trading hours after the closely-watched YouGov MRP Poll showed that British Prime Minister Boris Johnson's Conservative Party was projected to win the general election with a majority of 68 seats.
With the market action turning subdued due to the Thanksgiving Day holiday in the US on Thursday, the pair retraced its rally and was last seen posting modest losses at 1.2910.
USD looks to end week on strong footing
On Wednesday, in its second estimate, the US Bureau of Economic Analysis revised its Gross Domestic Product (GDP) reading for the third quarter to 2.1% from 1.9%. Other data revealed that Durable Goods Orders, which contracted by 1.4% in September, rebounded in October and rose 0.6%.
Assessing the GDP report, "business fixed investment, which was originally reported to have declined 3.0% during the quarter, was revised to show a drop of 2.7% instead. In addition, there was a bit more inventory investment than reported in the first release,” said Wells Fargo analysts. “The overall story remains one of some slowing in the overall rate of GDP growth over the past year or so.”
Supported by the data, the US Dollar Index advanced to its highest level in more than ten days at 98.44 before going into a consolidation phase above 98.30 on Thursday.
There won't be any other macroeconomic data releases from the US in the remainder of the week. The UK economic docket will feature Consumer Credit and Net Lending to Individuals figures.
Technical levels to watch for
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