- GBP/USD is taking the bids for the first time since Monday.
- Tories keep leading the polls despite allegations of spoofing the Labour Party’s manifesto.
- Brexit Party to unveil its policies while the first preliminary PMI from the UK will also be the key to watch.
Given the shift in the market’s trade sentiment, GBP/USD bucks the three-day-old downtrend while taking the bids to 1.2920 ahead of the London open on Friday.
The recent recovery could partially be attributed to the silence, prior to taking a positive turn, in the US-China trade tussle. As per the Reuters, the United States (US) may delay December 15 tariff hikes while the CNBC’s news of China still having US trade negotiators on their invitation list triggered risk recovery. Even so, the US Navy’s claim of “Freedom of Navigation” in the South China Sea was harshly criticized by Beijing.
On the other hand, the United Kingdom’s (UK) ruling Tory Party is under attack over spoofing the opposition Labour Party’s manifesto. The Conservatives were earlier blamed over their factcheck twitter handle. Though, nothing stops the polls to keep the Tories on the lead, as does the latest from Ipsos MORI.
The Brexit Party is up for releasing its policies later today amid the leader Nigel Farage’s calls of making “contract with the British people”. Other than Brexit, an anti-immigration move of Mr. Farage has always been criticized, which in turn might entertain market during the day.
On the economic calendar, Markit is scheduled to release preliminary readings of the UK’s Manufacturing and Services Purchasing Manager Index (PMI) numbers while the US PMIs and Michigan Consumer Sentiment Index will also decorate the line.
“This month brings the first flash PMIs for the UK. For the manufacturing PMI, we look for a bit of a pullback to 49.3 (market: 48.8), as election uncertainty weighs on sentiment. Hopes for a phase I China-US trade deal and receding odds of a hard Brexit should help to keep the PMI above its lows from the summer. We also see upside risks to the services PMI, looking for a small rise from 50.0 to 50.4 (market: 50.1),” says TD Securities.
Technical Analysis
Despite the pair’s recent recovery, bearish pin bar on the daily chart keep favoring the GBP/USD pair’s declines to monthly low near 1.2770. Though, an upside clearance of 1.3000 will defy the bearish candlestick formation.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
BoE expected to stand pat, eyes on statement language and vote split – LIVE
The Bank of England (BoE) is widely anticipated to maintain the bank rate at 4.75% following the December policy meeting. The underlying details of the monetary policy statement and the vote split could drive Pound Sterling's valuation.
EUR/USD retakes 1.0400 amid the post-Fed recovery
EUR/USD is recovering ground to near 1.0400 in the European session on Thursday. The pair corrects higher, reversing the hawkish Fed rate cut-led losses. Meanwhile, the US Dollar takes a breather ahead of US data releases.
Gold price recovers further from one-month low, climbs to $2,620 amid risk-off mood
Gold price attracts some haven flows in the wake of the post-FOMC sell-off in the equity markets. The Fed’s hawkish outlook lifts the US bond yields to a multi-month high and might the XAU/USD. Traders now look to the US Q3 GDP print for some impetus ahead of the US PCE data on Friday.
Aave Price Forecast: Poised for double-digit correction as holders book profit
Aave (AAVE) price hovers around $343 on Thursday after correcting more than 6% this week. The recent downturn has led to $5.13 million in total liquidations, 84% of which were from long positions.
Fed-ECB: 2025, the great decoupling?
The year 2024 was marked by further progress in disinflation in both the United States and the Eurozone, sufficient to pave the way for rate cuts. The Fed and the ECB did not quite follow the same timetable and tempo, but by the end of the year, the cumulative size of their rate cuts is the same: 100 basis points.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.