GBP/USD logs three-day winning streak on Brexit-positive headlines ahead of US NFP


  • GBP/USD takes the bids amid rising expectations of delayed/soft Brexit.
  • The opposition Labour party plans to trap UK PM to delay the general election.
  • US NFP, Fed Chair’s speech, and the Brexit headlines are in the spotlight.

With the receding chances of no-deal Brexit, the GBP/USD pair stays firm around 1.2330 after witnessing three consecutive positive daily closings ahead of Friday’s UK session open.

The United Kingdom’s (UK) House of Lords is still debating on various Brexit issues to roll them out by Friday evening, in order to return them to House of Commons that could pass them for Royal Assent. While no major change is expected in that front, the British Pound (GBP) traders are more inclined to hear from judicial reviews and pleas against the Prime Minister (PM) Boris Johnson’s prorogation to the parliaments.

It should also be noted that recent resignation by Jo Johnson, a top-tier Tory member, and PM Johnson’s brother, triggered ire against PM Johnson and further favored the odds of a soft Brexit.

Elsewhere, the opposition Labor party leader Jeremy Corbyn is reportedly assumed to play a game of hiding and seek with the UK PM in order to delay the general election till Brexit. The reason, as cited by the Telegraph, is the fear of losing the election.

While the UK’s economic calendar is mostly silent, the United States (US) will offer August month employment data for fresh impulse. Market consensus favors no change in the Unemployment Rate of 3.7% whereas Average Hourly Earnings might step back from 3.2% to 3.1% on YoY while likely being unchanged to 0.3% on MoM. The headline Nonfarm Payrolls (NFP) could weaken to 158K from 164K prior.

Additionally, the US Federal Reserve Chairman is scheduled to speak at an event hosted by the Swiss Institute of International Studies, in Zurich, and hence his comments will be closely observed ahead of the blackout period for the Fed policymakers.

Technical Analysis

Sustained break of the 50-day simple moving average (DMA) requires to be validated by a run-up crossing July 17 low of 1.2382 for further advances, failing to which can recall 1.2200 back to the chart.

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD under pressure under 1.1850 amid US election concern

EUR/USD is under some pressure below 1.1850 the anti-risk dollar is drawing haven bids on reports of meddling in US elections and fading prospects of an imminent US stimulus deal. US jobless claims are eyed.

EUR/USD News

GBP/USD drops below 1.31 amid negative rate talks

GBP/USD has slipped under 1.31 after BOE member Haldane reiterated the bank is studying negative rates. Earlier, the resumption of Brexit talks boosted the pound. Coronavirus measures and restrictions are eyed.

GBP/USD News

Gold off lows, still in the red around $1920 region

Gold traded with a mild negative bias through the early European session, albeit has managed to trim a part of its daily losses to the $1911-10 region.

Gold News

Forex Today: Foreign intervention in US elections weighs on mood, jobless claims, politics eyed

Concerns about foreign intervention in the US elections have weighed on the market mood, allowing the dollar to recover after Wednesday's losses. Intense Brexit talks resume in London, boosting the pound.

Read more

WTI: Buyers lurk around 100-day EMA

WTI bounces off $39.83, the lowest in one week, to battle 50% Fibonacci retracement. EIA inventories recovered from -3.818M prior, -1.021M forecast. The energy benchmark dropped the lowest since October 15 the previous day.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures