- The British traders will be back from the extended weekend after Monday’s holiday.
- Brexit shows mixed signals but buyers cheer positive outcomes from the cross-party talks.
The GBP/USD pair is taking the rounds near the intra-day high of 1.3120 while heading into the London open on Tuesday.
Sellers ruled the trading sentiment on Monday’s May Day holiday at the UK as doubts over the Brexit proceedings questions previous buyers. The British traders will return to their desks today after an extended weekend.
Earlier on Tuesday, the Telegraph’s news was on the wires that there are many Tories who are united to oust the PM Theresa May if she seeks opposition Labour party’s support for her Brexit proposal.
However, speculations were also on the rise that the Labour and PM May have enough support to ignore backbenchers and get their Brexit deal through the UK parliament.
The Sun recently came up with a news report stating that the Brexit party leader Nigel Farage warned PM May that a soft-Brexit stitch-up would be the "final betrayal" of Brits who voted to leave.
Looking forward, the UK Halifax house prices and the US JOLTs job openings are likely data that may gain investor attention while Brexit headlines could keep playing background noise.
Additionally, developments surrounding the US-China trade might also affect near-term market moves.
The April month British housing figure may register increased contraction to -2.4% from -1.6% (MOM) while likely declining to 2.3% from 2.6% on a three-month to a yearly basis. Further, the US employment stat for March could please the greenback buyers with 7.240 million figure versus 7.087 million earlier.
Technical Analysis
Given the pair’s latest break of the 50-day simple moving average (SMA), 1.3130, 1.3180 and 1.3200 could be on the bulls’ radar ahead of targeting late-March tops near 1.3270.
Alternatively, 1.3050 can limit immediate declines of the pair ahead of highlighting 100-day SMA level of 1.2995 and 200-day SMA near 1.2965.
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
AUD/USD dips below 0.6600 following RBA’s decision
The Australian Dollar registered losses of around 0.42% against the US Dollar on Tuesday, following the RBA's monetary policy decision to keep rates unchanged. However, it was perceived as a dovish decision. As Wednesday's Asian session began, the AUD/USD trades near 0.6591.
EUR/USD lacks momentum, churns near 1.0750
EUR/USD cycled familiar levels again on Tuesday, testing the waters near 1.0750 as broader markets look for signals to push in either direction. Risk appetite was crimped on Tuesday after Fedspeak from key US Federal Reserve officials threw caution on hopes for approaching rate cuts from the Fed.
Gold wanes as US Dollar soars, unfazed by lower US yields
Gold price slipped during the North American session, dropping around 0.4% amid a strong US Dollar and falling US Treasury bond yields. A scarce economic docket in the United States would keep investors focused on Federal Reserve officials during the week after last Friday’s US employment report.
Democrats to introduce bill targeting crypto mixing services
Rep. Sean Casten revealed in a House hearing on Tuesday that Democrats are planning to issue a bill this week that would target crypto-mixing protocols. Democrats and Republicans also clashed over the SEC's recent action against crypto companies.
Living vicariously through rate cut expectations
U.S. stock indexes made gains on Tuesday as concerns about an overheating U.S. economy ease, particularly with incoming economic reports showing data surprises at their most negative levels since February of last year.