Pound Sterling Price News and Forecast: GBP/USD - Boris bulldozes Javid to make way for infrastructure spending


GBP/USD in Rally Mode as BoJo Replaces His Finance Minister – 1.32 In Sight?

Risk assets are taking a hit this morning after China announced a 15k surge in COVID-19 (coronavirus) cases following a new diagnostic protocol, reviving fears that the outbreak may be less contained than previously assumed. That said, current data suggests that COVID-19 is less deadly than previous epidemics and generally contained to China for the moment, though risk sentiment could take another tumble if either of these assumptions is called into question in the coming days. One way or another, the disruption to economic activity in China seems poised to stretch into March at this point.

Meanwhile, nearly 9,000km away in London, pound traders are more focused on domestic developments. Specifically, UK Prime Minister Boris Johnson made some significant changes to his cabinet, prominently including his replacement of Finance Minister Sajid David with Rishi Sunak. At first blush, market participants believe that Sunak would be less likely to show resistance to the Prime Minister and may be more likely to institute fiscal stimulus (read: tax cuts and spending increases) than his predecessor. Read more...

GBPUSD pound sterling daily chart

GBP/USD Forecast: Boris bulldozes Javid to make way for infrastructure spending, levels to watch

Fire all your advisers if you want to keep your job – that is the message that Prime Minister Boris Johnson conveyed to Sajid Javid, the now-former Chancellor of the Exchequer. The cabinet reshuffle was touted as a minuscule one, leaving all the top cabinet posts unchanged. However, after Johnson – presumably backed by adviser Dominic Cummings – laid down the gun, this rearrangement now includes a market-moving development. Javid refused to accept these conditions and resigned. 

The PM reportedly wants to have more control over economic policy, especially infrastructure spending. Javid was seen as a more fiscally-conservative treasurer that would oppose substantial deficit spending.

Javid's departure makes way for Rishi Sunak, who held a more junior post. Sunak may pave the way to broader expenditure on roads, hospitals, and trains – including the controversial and budget-sinking HS2 scheme. Read more...

GBP USD Technical Chart Sunak instead of Javid

GBP/USD surges to over 1-week tops, around 1.3040-45 region

The buying interest around the British pound picked up some additional pace in the last hour and lifted the GBP/USD pair to over one-week tops, around the 1.3040 region.

Following an early dip to levels just below mid-1.2900s, the pair regained some positive traction and moved back into the positive territory for the fourth consecutive session on Thursday. The British pound lost some ground in reaction to reports that the UK finance minister Sajid Javid has resigned.

Sterling influenced by UK political developments

The downtick, however, turned out to be short-lived, rather attracted some aggressive dip-buying after the UK government confirmed that Rishi Sunak, the current chief secretary to the Treasury, has been appointed as the new Chancellor. Read more...

GBP/USD

Overview
Today last price 1.3066
Today Daily Change 0.0107
Today Daily Change % 0.83
Today daily open 1.2959
 
Trends
Daily SMA20 1.3026
Daily SMA50 1.3075
Daily SMA100 1.2914
Daily SMA200 1.2692
 
Levels
Previous Daily High 1.2992
Previous Daily Low 1.2937
Previous Weekly High 1.3184
Previous Weekly Low 1.2882
Previous Monthly High 1.3281
Previous Monthly Low 1.2954
Daily Fibonacci 38.2% 1.2971
Daily Fibonacci 61.8% 1.2958
Daily Pivot Point S1 1.2933
Daily Pivot Point S2 1.2907
Daily Pivot Point S3 1.2878
Daily Pivot Point R1 1.2988
Daily Pivot Point R2 1.3018
Daily Pivot Point R3 1.3044

 

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