GBP/USD: Mildly bid ahead of UK PMI, trade/Brexit headlines in play


  • GBP/USD stays mostly positive amid receding threats of no-deal Brexit.
  • Tories lead in early-election polls, risk-on stays on the cards.
  • UK Construction PMI, US factory Orders to decorate economic calendar.

With the increasing odds of a Tory leadership post-December election, GBP/USD holds on to recovery gains while taking the bids to 1.2940 ahead of Monday’s London open.

Be it YouGov, Ipsos or Deltapoll, all of them suggest a clear lead of the Tory leader Boris Johnson over other the main opposition Labour Party ahead of the general election on December 12th, as per Reuters. However, the United Kingdom’s (UK) Prime Minister (PM) still seems skeptic of them as the Times mentions that the UK PM Johnson will remove threat of no-deal Brexit from Conservative party manifesto.

On the other hand, news concerning the US-China trade deal has been mixed as the United States’ (US) President Donald Trump’s optimism surrounding the phase one deal fail to conquer the Commerce Secretary Wilbur Ross’s doubts over any further relationships.

Also adding to the market’s lack of risk-on could be the US President’s absence at the weekend’s the Association of Southeast Asian Nations (ASEAN) summit in Thailand, the second one in a row. However, this could be mitigated by the latest news from Reuters that quotes President Trump’s envoy while conveying that US President Trump invites Southeast Asian leaders to visit US for a special summit.

Even so, market sentiment has been choppy since the start amid a lack of major data/event and Japan’s off.

Moving on, investors will be concentrating mainly on the trade/Brexit headlines while also keeping an eye over October Markit Construction Purchasing Managers Index (PMI) from the UK and the US Factory Orders for September. Market consensus favors an upbeat print of 44.00 versus 43.3 from the British PMI while also expecting the US statistics to decline further to -0.3% from -0.1% prior.

Technical Analysis

Prices keep being positive unless closing below  61.8% Fibonacci retracement level of March-September downpour, at 1.2842, a break of which can fetch prices to 1.2790/80 support confluence including 21-day Simple Moving Average (SMA), late-June high and the late-October low. On the upside, a downward sloping trend line since September, at 1.3000, holds the key to pair’s rise to the previous month high close to 1.3015 and then to 1.3100 round-figure.

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures