GBP/USD probes weekly high as YouGov poll ignores opposition Labour Party's allegations
- GBP/USD seesaws around one week top as the key poll suggests the ruling Tory Party to keep the helm of the United Kingdom (UK).
- The opposition Labour Party’s allegations on the Tories, over NHS, fail to disappoint cable buyers.
- US-China trade war fears add strength to the upside.
In addition to the YouGov polls, political tension between the United States (US) and China, over Hong Kong bill, keeps the GBP/USD pair on the bids around 1.2930 while heading into the London open on Thursday.
The YouGov’s MRP is considered as the mother of all polls mainly because it rightly predicted a hung Parliament in 2017. The poll recently suggested that the Prime Minister (PM) Boris Johnson-led Tories will have around 11 point leads over the opposition Labour Party. The Poll predicts that the Conservatives will gain 359 seats against the opposition Labour Party's 211 seat forecast.
Markets seem to have ignored the opposition Labour Party’s leader Jeremy Corbyn’s claims that the leaked government documents say that the Tories will sell National Healthcare System (NHS) to the US in a deal after the Brexit.
Even so, The Guardian quotes PM Johnson’s adviser Dominic Cummings saying Brexit supporters that the general election is “much tighter” than polls might suggest. The news also says that the No10 member urged them to persuade their friends to vote Tory.
It’s worth mentioning that the recent weakness in the US dollar (USD), mainly due to the US-China political tussle after the US President signed Hong Kong Act, is also a reason behind the cable’s latest rise. The greenback previously benefited from the upbeat data and increasing odds of the US-China trade deal. After the news, risk aversion has been ignited with Asian stocks staying on the back foot.
While the US Thanksgiving Holiday and a lack of major data/events from the US could keep the pair’s momentum in check, trade/political headlines can continue entertaining market players.
Technical Analysis
Although the monthly peak of 1.2986 can act as an immediate resistance, buyers will wait for the pair’s sustained rise beyond 1.3000 and the previous month high close to 1.3015. Alternatively, three-week-old rising trend line around 1.2830 could restrict the pair’s immediate declines.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
