|

GBP/USD benefits from British political plays ahead of UK employment data

  • GBP/USD seesaws near one-week high as increasing odds of Tory leadership favor bulls.
  • Sluggish risk-tone, overall USD strength tame recovery around 21-day SMA.
  • British jobs report, US President Trump’s comments and Fedspeak in the spotlight.

Despite benefiting from the UK’s political optimism, the GBP/USD pair awaits fresh clues from monthly employment numbers while taking the bids to 1.2865 ahead of the London open on Tuesday.

The Brexit party leader Nigel Farage’s step back from 317 constituencies earlier won by Tories increase the odds of another Conservative leadership and smooth Parliament functioning after the United Kingdom’s (UK) departure from the bloc. However, the Times suggests that the Tories want extra safety while urging Mr. Farage to pull candidates from marginal Labour constituencies out of his earlier mentioned 300 polls to contest.

Elsewhere, the US-China trade tension keeps the spotlight while the United States’ (US) meddling in Hong Kong protests awaits China’s response for fresh risk-off.

That said, the market’s risk-tone remains sluggish with the US 10-year treasury yields being around 1.92% with most Asian stocks flashing mixed signals.

Given the presence of monthly employment data on the economic calendar, traders are less likely to look for anywhere else ahead of the release. UK’s September month Average Earnings and Unemployment Rate will join October month’s Claimant Count Change to move the British pound at 09:30 AM GMT. Forecasts suggest mild weakness in Claimant Count numbers amid no change in Unemployment Rate and Average Earnings.

Following the data, speech from the US President and Fedspeak will be closely observed to determine the fate of US-China trade relations and the US Federal Reserve’s future moves respectively.

Technical Analysis

A sustained break above the 21-day Simple Moving Average (SMA) level of 1.2875 could trigger pair’s rise to a three-week-old falling trend-line, around 1.2945 now. On the downside, 1.2770 and 200-day SMA level of 1.2700 limit immediate declines.

additional important levels

Overview
Today last price1.286
Today Daily Change8 pips
Today Daily Change %0.06%
Today daily open1.2852
 
Trends
Daily SMA201.2874
Daily SMA501.2571
Daily SMA1001.2454
Daily SMA2001.2704
 
Levels
Previous Daily High1.2899
Previous Daily Low1.2785
Previous Weekly High1.2943
Previous Weekly Low1.2769
Previous Monthly High1.3013
Previous Monthly Low1.2194
Daily Fibonacci 38.2%1.2855
Daily Fibonacci 61.8%1.2829
Daily Pivot Point S11.2792
Daily Pivot Point S21.2731
Daily Pivot Point S31.2678
Daily Pivot Point R11.2906
Daily Pivot Point R21.2959
Daily Pivot Point R31.302

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

More from Anil Panchal
Share:

Editor's Picks

EUR/USD keeps the offered stance just above 1.1700

EUR/USD is coming under heavy selling pressure in what has been a rather grim start to the new trading week, with the pair now trading close to the 1.1700 support area as the US Dollar stages a solid rebound. The prevailing flight to safety mood continues to favour the Greenback, as investors react to the escalating conflict in the Middle East and trim risk exposure across the board.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold trims losses, back below $5,400

Gold now surrenders part of the earlier advance past the $5,400 mark per troy ounce at the beginning of the week. Indeed, the precious metal’s strong uptick remains fuelled by increasing geopolitical tensions in the Middle East amid the intense demand for safer assets.

Bitcoin on brink of breakdown amid US-Iran war

Bitcoin (BTC) remains under pressure near the key support level of $65,700. Trading at $66,400 at the time of writing on Monday, a breakdown below this critical level would suggest a deeper correction ahead.

The Fed is finally talking about AI – Here's why it matters for the US Dollar

AI is moving from earnings calls into the heart of monetary policy discussions, forcing Federal Reserve officials to confront a new question: How to act if AI reshapes inflation, employment and interest rates at the same time?

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network  hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.