GBP/USD recovers to 1.2700 post-UK political hustings

The UK PM candidates answered questions in digital hustings.
Boris Johnson moves away from previous hard Brexit threat while Jeremy Hunt doubts the opponent’s ideas.
Cross-party MPs to launch motions on key plans concerning the Brexit during next week.

Anil Panchal FXStreet

With the UK Prime Minister (PM) frontrunner Boris Johnson’s surprising comments on chances of the no-deal Brexit at the political hustings, followed by cross-party MPs’ plan to move forward to direct the Brexit, the GBP/USD takes the bids to 1.2700 during early Thursday.

As a part of their promotion to lure over 160,000 Tory voters, the UK PM candidate Boris Johnson and Jeremy Hunt joined the digit hustings and answered questions.

Out of the not so long communication channel, Mr. Johnson’s statement that the chances of a no-deal Brexit are a “million-to-one against” grabbed major attention after the PM candidate’s previous comments to crash out of the EU on 31 October “come what may, do or die”.

Mr. Johnson also said one can manage to have a trade deal with the EU even after leaving without any deal on October 31, the same logic was aptly criticized by Jeremy Hunt.

Elsewhere, The Guardian says that a group of cross-party members of the British parliaments (MPs) is planning to again put forward a motion to block the no-deal Brexit and also propose blocking all (likely most not all) the government spending in case of a hard exit sometime during next week.

Moving on, the UK economic platter is almost empty, which in turn could shift traders towards politics and searching clues from elsewhere like the US data-line and the G20.

Technical Analysis

The weekly top near 1.2785 is likely nearby resistance for the traders to watch whereas 1.2660 and 1.2600 can entertain sellers during the pullback.

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.

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