GBP/USD benefits from UK’s receding political uncertainty


  • Optimism surrounding the break of political impasse pleases the cable buyers.
  • Speech from BOE’s Carney and the US retail sales can offer fresh impulse.

Not only shrinking numbers to the UK PM’s race, but the news of failed candidates to support the remaining ones also signal receding political uncertainty at the UK which in turn favors GBP/USD towards 1.2680 during early Friday.

At the end of Thursday’s first round of Conservative voters to decide on the Tory leadership and also the next Prime Minister of the UK, only 7 candidates remain in the race while 3 got rejected due to failure of getting lesser than 15 required votes.

While a lesser number of candidates gives a bit more clarity over the issue, some of the exiting Tories like Andrea Leadsom recently announced their support to the remaining players, Sajid Javid in her case.

The news was also taking rounds that the Matt Hancock, who is still in the race with 20 votes, might as well exit on Friday whereas few others are heading up to support Boris Johnson.

On the other hand, rising political tension between the US and Iran, coupled with lack of positive news concerning the US-China trade stalemate, keeps a drag on the US Dollar (USD) that has recently been under pressure.

In addition to the global political plays, scheduled speech from the Bank of England (BOE) Governor Mark Carney and the US retail sales (expected 0.4% v/s 0.0%) could also entertain momentum traders for rest of the day.

Technical Analysis

With 1.2640 and 1.2560 limiting the quote’s decline towards December 2018 low around 1.2480, chances of the pair’s U-turn to 1.2760 and 1.2865/75 region including April low and 50-day simple moving average (SMA) can’t be denied.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.1200 amid dovish ECB comments

EUR/USD is trading around 1.1200 after ECB officials expressed concern about global growth President Draghi will speak later. Tension is rising toward the Fed decision after US retail sales surprised on Friday.

EUR/USD News

GBP/USD pressured below 1.2600, Conservative contest in focus

GBP/USD is trading below 1.2600, consolidating the losses seen on Friday after US retail sales beat expectations. The Conservative contest is heating up ahead of tomorrow's second vote.

GBP/USD News

USD/JPY: wait-and-see continues ahead of Fed

The dollar consolidates its gains against most rival, and scarce data exacerbates the quietness. USD/JPY bullish above 108.90, bearish below 108.10.

USD/JPY News

Gold: 100-month MA is a level to beat for the bulls

Gold (XAU/USD) is struggling to cut through key technical line which proved a tough nut to crack in 2018. The yellow metal rose to $1,358 on Friday, but the break above the 100-month MA.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more

Majors

Cryptocurrencies

Signatures