- GBP/USD registers modest moves amid a lack of fresh catalysts.
- The pair surged the previous day after a surprise resignation of FinMin Sajid Javid.
- The new attorney general wants to take back control from the EU-led courts, France pushes for tough UK commitments.
GBP/USD seesaws near 1.3050 ahead of the London open on Friday. In doing so, the cable traders catch a breath after a heavy run-up marked during the previous day.
The reason could be attributed to the UK’s Finance Minister Sajid Javid’s surprise resignation. The Chancellor cited the UK PM Boris Johnson’s push to fire the team as a reason for leaving the post. Following his resignation, Rishi Sunak will lead the team and is known to have the Tory leader’s support due to bias towards further spending.
The UK cabinet’s reshuffle also led to the departure of some of the key diplomats that were mostly identified earlier. However, the incoming Attorney General Suella Braverman has the firm view to “take back control” from an interfering judiciary as noted by The Guardian.
The same will harden the Brexit negotiation at the time when the French President recently pushed for the tougher UK commitment to have “the level playing field.”
Further, the UK PM Johnson is reported to have turned down the US visit again, as noted by The Sun, which in turn makes him a less friendly to the US President Donald Trump. The US leader earlier showed dislike for British favor for China’s Huawei.
Elsewhere, the fears concerning coronavirus are getting weaker and supporting the risk recovery. As a result, the US 10-year treasury yields stay modestly down to 1.61% while stocks in Asia are marking a recovery from Thursday’s declines.
Looking forward, the absence of UK data will push the cable traders to keep eyes on political/Brexit headlines, coupled with coronavirus update. However, the US Retail Sales and Michigan Consumer Sentiment Index can please the momentum traders during the later part of the day.
Technical Analysis
Prices are likely to rise towards 1.3100 with 1.3070 acting as an immediate upside barrier. On the downside, 1.2970, 1.2940 and 1.2900 should be watched during the quote’s pullback.
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 holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.