GBP/USD At One-Week High
The pound advanced for a second consecutive day versus the U.S. 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
Does China “Retaliation” Mean Phase 1?
In response to U.S. 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 U.S. 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 U.S. 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 U.S. 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 expect speeches from ECB’s Coeure and lane and one from the Bundesbank’s Weidmann.