With the US dollar (USD) rising across the board, amid uncertainty concerning the trade deal with China, the cautious sentiment of the British pound (GBP) traders ahead of the “Super Thursday” drag GBP/USD to a weekly low of 1.2837 ahead of the London open.
The United Kingdom (UK) is jostling with the election campaign for the December month poll wherein the Prime Minister (PM) Boris Johnson is standing tall against the opposition Labour party leader and doesn’t hesitate using harsh words against the opponents. The recent resignation by the Labour Deputy, Tom Watson, and a receding volume of the allegations that the Tory leader tried saving Russian hackers could be considered as the backing force. Brexit seems to command less market attention even if the European Union (EU) diplomats are trying to spoil the Brexiteers’ image.
Markets will now look forward to the Bank of England’s (BOE) monetary policy decision and the Quarterly Inflation Report (QIR) for fresh impulse. While broad consensus favors no change in the current monetary policy, amid Brexit uncertainty, joining a downward revision to growth and inflation forecasts, traders will particularly be interested in Governor Carney’s speech for details.
Other than BOE related events, a speech from the UK Chancellor Sajid Javid and second-tier data from the US, coupled with comments by the President and CEO of the Federal Reserve Bank of Dallas Robert Kaplan, will also be observed.
GBP/USD SHORT (Sell)
ENTER AT: 1.2848