GBP/USD undermines increasing odds for hard-Brexit while aiming 50-day SMA

  • The Cable ignores fresh clues from the UK PM Candidate highlighting fears of no-deal Brexit.
  • Mr. Boris stands ready to take the EU help over Irish border issue but defends the October 31 deadline for Brexit.
  • Jeremy Hunt’s appearance and second-tier data on the spotlight.

Even with the UK PM candidate Boris Johnson reiterating his pledge to leave the EU on October 31, the GBP/USD pair continues to trade on the front foot near 1.2750 heading into the London open on Tuesday.

There could be many reasons for the said pullback ranging from the broadly persistent US Dollar (USD) weakness to the hidden chances of the EU’s co-operation for the Brexit.

The greenback continues to be market’s despicable currency as traders consider the US Federal Reserve’s dovish tone as a signal for the upcoming bear-run amid a slew of weak data. Adding to the US currency’s weakness could be the US-China trade tussle and the US political tension with Iran.

At home, the British Prime Minister (PM) Candidate Boris Johnson appeared for the interview with the BBC. Mr. Johnson repeats his Brexit deadline pledge while showing preparedness to take help of the EU sources in case of a hard Brexit and/or Irish border issue where he favors soft boundaries.

While results of the CBI Distributive Trade Survey (MoM) for June becomes the only data from the UK, the S&P/Case Shiller Home Price Index and Housing Price Index for April, June month CB consumer confidence and May month New Home Sales will decorate the economic calendar from the other end, i.e. the US.

While UK’s trade survey previously revealed -27% depletion, the US consumer sentiment gauge grew 134.1 during earlier readouts. Moving on, the home price index could soften to 2.6% from 2.7% whereas the housing price index might rise to 0.2% from 0.1%.

Furthermore, another candidate for the UK PM’s race Jeremy Hunt will be interviewed tomorrow and will grab the market attention in conjunction with the Bank of England’s (BOE) quarterly inflation report hearings.

Technical Analysis

The 1.2660/70 area comprising current month tops continues to act as the key upside barrier holding the gates for 50-day simple moving average (SMA) level of 1.2810 and the April month low near 1.2865. Alternatively, 1.2670 and 1.2610 acts as nearby supports head of May-end low of 1.2560.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1130 in dull session, ECB eyed

The EUR/USD pair has recovered from a fresh weekly low of 1.1105 but remains depressed. Market players now waiting for ECB’s monetary policy, the last one presided by Mario Draghi.


GBP/USD attempting to recover after parliament slowed down the Brexit process

GBP/USD is moving up toward 1.29, trying to recover after parliament rejected the fast-track process that PM Johnson wanted for approving his Brexit deal. An extension to Article 50 and elections are on the cards.


USD/JPY struggles below mid-108.00s, over one-week lows

The Greenback held weaker against its Japanese counterpart, with the USD/JPY pair struggling below mid-108.00s, or over one-week lows set earlier this Wednesday.


Gold climbs higher toward $1,500 on risk-aversion

The XAU/USD pair gained traction on Wednesday and rose toward the upper-limit of its two-week-old range near the critical $1,500 handle supported by risk-off flows.

Gold News

If you are a "Hodler" here is where you could find support in Bitcoin

Today the price of Bitcoin fell and the price is now headed toward the 7,310.00 support used as a resistance zone on the week of the 3rd September 2018.

Read more