GBP/USD: Modestly changed to 1.2915 amid fears of UK election


  • GBP/USD awaits the EU’s word on Brexit extension, ignores fears of a general election, the second referendum.
  • No major British data highlights the US economic calendar, trade/Brexit news as the key catalysts.

Despite mounting speculations of a general election in the UK, GBP/USD clings to 1.2915 during early Thursday morning in Asia.

Be it the ITV interview of the United Kingdom’s (UK) Chancellor or the UK Times story, everything signals increasing odds for a general election, not to mention the opposition Labour party’s mild push for the second referendum.

However, the key to the likely election is the European Union’s decision over the British request to extend the Brexit deadline from October 31.

The Cable reacted positively to rising expectations of a soft Brexit after various news sources confirmed that the EU will wait till Friday, possibly till early Monday, before announcing its verdict on the Brexit extension.

With this, the market’s risk-tone improved and could be well witnessed in the performances of the US 10-year treasury yields and Wall Street.

Adding to the pair’s strength could be the US Dollar (USD) weakness on the back of downbeat prints of second-tier housing and Mortgage Applications data, coupled with upbeat news concerning the US-China trade deal.

While no major economics are up for publishing form the UK’s side, investors will observe the United States' (US) economic calendar that carries monthly readings of Durable Goods Orders and some more housing numbers, not to forget weekly jobless figures.

Technical Analysis

The Cable bulls are waiting for an upside break of 1.3015 to aim for 1.3100 and May month top surrounding 1.3180 while pair’s declines below 1.2840 can recall June month high around 1.2785 and 200-day Simple Moving Average (SMA) level of 1.2715.

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD pressures as Fed officials hold firm on rate policy

AUD/USD pressures as Fed officials hold firm on rate policy

The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.

AUD/USD News

EUR/USD extends its downside below 1.0650 on hawkish Fed remarks

EUR/USD extends its downside below 1.0650 on hawkish Fed remarks

The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.

EUR/USD News

Gold price edges higher on risk-off mood hawkish Fed signals

Gold price edges higher on risk-off mood hawkish Fed signals

Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.

Gold News

Runes likely to have massive support after BRC-20 and Ordinals frenzy

Runes likely to have massive support after BRC-20 and Ordinals frenzy

With all eyes peeled on the halving, Bitcoin is the center of attention in the market. The pioneer cryptocurrency has had three narratives this year already, starting with the spot BTC exchange-traded funds, the recent all-time high of $73,777, and now the halving.

Read more

Billowing clouds of apprehension

Billowing clouds of apprehension

Thursday marked the fifth consecutive session of decline for US stocks as optimism regarding multiple interest rate cuts by the Federal Reserve waned. The downturn in sentiment can be attributed to robust economic data releases, prompting traders to adjust their expectations for multiple rate cuts this year.

Read more

Forex MAJORS

Cryptocurrencies

Signatures