- GBP/USD bears the burden of downbeat data, worries concerning Brexit.
- The UK Chancellor Sajid Javid signaled harsh Brexit, challenges to the businesses.
- A slew of downbeat data favors the BOE’s recently dovish tone.
Following its brief dip beneath 1.3000, to the intra-day low of 1.2994, GBP/USD seesaws near 1.3000 while heading into the London open on Monday. The pair came under pressure on Friday amid increasing odds of the BOE’s rate cut whereas the recent Brexit-negative headlines offered fresh downside to the quote.
Not only the pessimism spread through the comments of the UK’s Finance Minister, Sajid Javid, but news from the UK Express also threatened the Brexit optimists. The headlines relied on the report while saying that the UK PM Boris Johnson will impose restrictions on low-skilled migrants who wish to come to the UK on the first day after the Brexit transition period ends in December. This will increase the hardships of the EU-UK trade talks and increase the odds of a harsh Brexit.
The downbeat prints of the UK Retail Sales, published Friday, pleased the BOE doves ahead of the month-end monetary policy meeting. Earlier in the month, the BOE Governor Mark Carney highlighted fears of Brexit and renewed risks of a rate cut from the British central bank.
On the other hand, the US dollar remains positive after a slew of positive economics pushes the US Federal Reserve to rethink their “wait and watch” approach.
The market’s risk tone remains mostly sluggish amid the absence of US traders and a lack of major data/events on the economic calendar. The same could be witnessed in Asian stocks.
Looking forward, traders will keep eyes on the trade/Brexit headlines for fresh impulse while Tuesday’s headlines employment data from the UK will be the key to watch.
A daily closing below an upward sloping trend line since early-November, at 1.2985 now, can fetch the quote further down to 100-day SMA near 1.2800.
Additional important levels
|Today last price||1.3003|
|Today Daily Change||-12 pips|
|Today Daily Change %||-0.09%|
|Today daily open||1.3015|
|Previous Daily High||1.312|
|Previous Daily Low||1.3013|
|Previous Weekly High||1.312|
|Previous Weekly Low||1.2954|
|Previous Monthly High||1.3515|
|Previous Monthly Low||1.2896|
|Daily Fibonacci 38.2%||1.3054|
|Daily Fibonacci 61.8%||1.3079|
|Daily Pivot Point S1||1.2979|
|Daily Pivot Point S2||1.2942|
|Daily Pivot Point S3||1.2872|
|Daily Pivot Point R1||1.3086|
|Daily Pivot Point R2||1.3156|
|Daily Pivot Point R3||1.3193|
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.