The UK Parliament approved the Brexit deal and pushed the GBP/USD pair to fresh 32-month tops. The cable now seems to have stabilized just above the 1.3600 mark and is more likely to consolidate in a range amid typical year-end thin trading volumes as bulls turn cautious amid further COVID-19 restrictions in the UK, FXStreet’s Haresh Menghani briefs.
Key quotes
“The British pound largely shrugged off an unprecedented level of COVID-19 infection across the UK. Several areas of the country went into the toughest tier-4 restrictions on Wednesday after the UK reported over 50,000 news cases for the second day in a row.”
“In the latest Brexit-related development, UK lawmakers approved the post-Brexit trade deal with the European Union and reports indicate that the Queen has granted the accord royal assent.”
“There isn't any major market-moving economic data due for release from the UK. Meanwhile, the US economic docket highlights the only release of the usual Initial Weekly Jobless Claims. This, in turn, leaves the pair at the mercy of the USD price dynamics. That said, developments surrounding the coronavirus saga might influence the broader market risk sentiment and infuse some volatility, allowing trades to grab some meaningful opportunities on the last day of the year.”
“The cable still seems poised to prolong its recent upward trajectory and aim to reclaim the 1.3700 mark. Some follow-through buying has the potential to lift the pair further towards the next major hurdle near the 1.3745-50 region. On the flip side, any meaningful pullback below the 1.3600 mark might now find decent support near mid-1.3500s.”
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 retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.