- 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 extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.