- GBP/USD struggles for a clear direction near the highest levels since September 02.
- UK’s coronavirus (COVID-19) deaths rise to the early May top.
- EU Chief rekindles odds of no-deal, Irish PM marks “good results” in talks.
- US Thanksgiving Day can restrict market moves amid a light calendar, risk reshuffle can’t be ruled out.
Having rallied for consecutive nine-day, GBP/USD bulls catch a breather around 1.3390 while heading into Thursday’s London open. In doing so, the quote stays near the fresh high since September 02 of 1.3397, marked earlier in Asia. While receding Brexit optimism and the UK’s covid fears tame the bulls, the US dollar’s losses outweigh everything amid a quiet session on Thanksgiving Day.
The UK Finance Minister Rishi Sunak’s effort to tame the biggest budget deficit since world war two couldn’t disappoint the Cable buyers the previous day as the US dollar index (DXY) dropped to a fresh low since September 01. Not only the downbeat data but risk-on mood also negatively affected the greenback on Wednesday.
On the other hand, the European Commission head, Ursula von der Leyen, showed readiness to walk away with no trade deal while France also sounded grumbling over the fisheries issues. Though, Ireland’s PM Micheal Martin seemed hopeful in recent comments.
Elsewhere, the UK’s covid-related death toll surged by 696 to 56,533, the highest daily jump since May 5, on Wednesday. Even so, UK PM Johnson kept up the mood to celebrate Christmas.
It should be noted that the US-China tussle is back in focus with both the nations missing on the trade promises even after 10 months of the much-cheered deal. Also, the American government sanction on four companies from China and Russia, concerning the Iran missile program, spoils the mood.
However, futures stay mildly positive amid vaccine hopes and a light calendar due to the US holidays. GBP/USD bulls are likely to stay on the driver’s seat as the DXY remains pressured and the Brexit hopes, despite receding off-late, remain on the table.
Technical analysis
Overbought RSI conditions tease bears to look for entries below an upward sloping trend line from November 02, at 1.3360.
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.
Recommended content
Editors’ Picks
EUR/USD fluctuates in daily range above 1.0600
EUR/USD struggles to gather directional momentum and continues to fluctuate above 1.0600 on Tuesday. The modest improvement seen in risk mood limits the US Dollar's gains as investors await Fed Chairman Jerome Powell's speech.
GBP/USD stabilizes near 1.2450 ahead of Powell speech
GBP/USD holds steady at around 1.2450 after recovering from the multi-month low it touched near 1.2400 in the European morning. The USD struggles to gather strength after disappointing housing data. Market focus shifts to Fed Chairman Powell's appearance.
Gold aiming to re-conquer the $2,400 level
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
US outperformance continues
The economic divergence between the US and the rest of the world has become increasingly pronounced. The latest US inflation prints highlight that underlying inflation pressures seemingly remain stickier than in most other parts of the world.