- Brexit hardliners are likely to be challenged soon.
- Lack of UK data highlights today’s US inflation numbers.
While British lawmakers’ run to become the next PM remains surrounded by long-standing Brexit worries, traders weigh lack of UK data while taking the rounds of the GBP/USD pair near 1.2720 ahead of the London open on Wednesday.
The lead runner for the UK Prime Minister Boris Johnson is all set to announce begin his campaign with a single motto of leaving the EU on October (be it with or without the deal). However, some of the Tory backbenchers and the opposition Labour party members are likely to unite against the hard Brexit. The members of the parliaments (MPs) may propose a motion to stop hard Brexit either on Wednesday or on Thursday.
Apart from politics, the British Pound (GBP) recently portrayed upbeat results from the UK average earnings numbers and became the best G10 currency. Though, absence of economics for today confines the trading sentiment.
Additionally, the US President’s tweets threatening China and pushing the Federal Reserve towards a rate cut seem to have gained less importance off-late. It should also be noted that President Trump’s praise to Mexico and likely 90-day’s grace period to perform the “secret” deal grabbed a few attention as well.
Given the lack of economics from the UK, headline consumer prices index (CPI) data from the US will be in the spotlight. The CPI is expected to weaken to 0.1% from 0.3% on MoM basis while declining to 1.9% from 2.0% on the yearly format. Further, the CPI ex-food and energy can increase to 0.2% from 0.1% on a monthly basis but might remain unchanged at 2.1% a YoY format.
Technical Analysis
1.2640 and 1.2600 hold the gate for the pair’s extended downturn to May-end low near 1.2560 while recent highs and February low between 1.2760 and 1.2775 can limit the pair’s near-term upside ahead of fuelling the quote to April month bottom around 1.2865.
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
EUR/USD retreats to 1.0950 area as safe-haven flows dominate markets
EUR/USD loses its traction and declines to the 1.0950 area following a recovery attempt earlier in the day. The risk-averse market atmosphere makes it difficult for the pair to hold its ground as investors grow increasingly concerned over a deepening trade war weighing on global economic activity.
GBP/USD drops to fresh monthly low, tests 1.2800
GBP/USD stays under persistent bearish pressure in the European session on Monday and trades at its lowest level in a month near 1.2800. The intense flight-to-safety remains the main market theme after US President Donald Trump's tariffs triggered a global trade war last week.
Gold price holds above $3,000 amid a global meltdown; bulls seem non-committed
Gold price attracts some sellers near the $3,055 support-turned-resistance and stalls its intraday recovery from the $2,972-2,971 area, or a nearly four-week low touched earlier this Monday. Investors continue to unwind their bullish positions to cover losses from a broader meltdown across the global financial markets
Solana Price Forecast: Bears gain momentum as SOL falls below $100
Solana (SOL) extends its loss by over 7% and falls below the $100 mark at the time of writing on Monday after crashing 15.15% last week. Coinglass data shows that SOL’s leveraged traders wiped out nearly $70 million in liquidations in the last 24 hours.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.