European Open: Pound rises on latest survey results

 

GBP/USD at one-week high

The pound advanced for a second consecutive day versus the US dollar as the latest YouGov poll shows Boris Johnson’s Conservative Party extending its lead over the Labour Party and, if things stay status quo, could win the December election with a handsome majority.

GBP/USD is currently 0.18% higher at 1.2935 and looks to be heading toward trendline resistance around 1.2975 which has been in place since the October 21 high of 1.3013. The rising 55-day moving average at 1.2689 seems about to cross above the 200-day moving average at 1.2702 in the next few days, which would be the first time since June 4.

 

GBP/USD Daily Chart

Source: OANDA fxTrade

 

Does China “retaliation” mean Phase 1?

In response to US President Trump signing the Hong Kong Democracy Bill into law, China has said the Bill severely meddles in China’s internal affairs, it strongly opposes it and, as usual, threatened retaliation, though no details of what this might entail were given. Markets appear to have mostly shrugged off the implications for the Phase 1 trade negotiations, with US indices reaching new record high ahead of the Thanksgiving holiday.

Those gains appear to be a bit shaky in slow trading during this morning’s Asian session, with US indices sliding between 0.33% and 0.35%, with the US30 index having a negative day for the first time in five days.

 

A Europe-centric calendar

The US Thanksgiving holiday has ensured a shorter data calendar for today. Europe focuses on a number of confidence indicators, with consumer confidence seen unchanged at -7.2 this month and the economic sentiment indicator improving to 101 from 100.8.

Provisional German November inflation data is expected to show prices rising 1.3% y/y after a 1.1% gain in October. We can also expected speeches from ECB’s Coeure and lane and one from the Bundesbank’s Weidmann.

 

The full MarketPulse data calendar can be viewed at https://www.marketpulse.com/economic-events/

 

Happy Thanksgiving!

 

 

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.
Andrew Robinson

Latest posts by Andrew Robinson (see all)