- GBP/USD stays firm around the highest since April.
- UK PM gets criticism over the leaked document, failure to sympathize with the hospitalized boy in the final countdown to December 12 election.
- UK Manufacturing/Industrial Production, trade balance and monthly GDP to decorate the British economic calendar.
GBP/USD remains mildly bid around 1.3150 ahead of the London open on Tuesday. The pair surged to April month high during the previous day but languishing lead of the ruling Conservatives over the opposition Labour Party dragged it from further upside.
Opinion polls from the ICM showed Tories' lead down to 6 points and raised fears of a surprise Conservative defeat, or a hung parliament, amid the latest round of verbal attacks on the United Kingdom (UK) Prime Minister (PM) Boris Johnson.
The Conservatives’ leader is under fresh fires after a leaked document cited by the Financial Times and the BBC says the UK government will struggle to deliver the infrastructure and staffing needed to deliver Brexit. The documents also revealed that the UK PM is considering checks on Northern Ireland border, which the Democratic Unionist Party, Arlene Foster, said has been turned down. Additionally, the front-runner’s act of avoiding to see the photo of a four-year boy getting poor National Healthcare Systems (NHS) services also got broad criticism.
On the other hand, the United States (US) and China are still at loggerheads as far as the phase-one is concerned, which in turn drags the US Dollar (USD) down since the week’s start.
Moving on, final rounds of pitching and public visits by the Conservatives and Labour Party members will be important whereas October month UK data dump and third quarter (Q3) US jobs data will decorate the economic calendar. “We're in line with consensus is looking for a modest 0.1% m/m gain for October GDP. We look for a small 0.2% increase in manufacturing activity after two months of declines, but the services sector is unlikely to add much to overall activity, so GDP growth should be fairly subdued. This sets up Q4 GDP to come in line with the BoE's forecast of 0.2% q/q,” say analysts at TD Securities.
Technical Analysis
April month high near 1.3200 is in the spotlight ahead of March 27 top surrounding 1.3270. Meanwhile, pair’s declines below 1.3100 will trigger fresh downpour.
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 rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD regains 1.2350 ahead of UK PMIs
GBP/USD is recovering ground above 1.2350 in the European session, as the US Dollar comes under fresh selling pressure on improving risk sentiment. The further upside in the pair could be capped, as traders await the UK PMI reports for fresh trading impetus.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin price.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.