Yahoo Finance GBP/USD Daily Price Forecast – GBP/USD Continues Upward Movement despite Brexit Woes
The GBP/USD is trading softly near 1.3250 with 0.11% increase in value ahead of a thinned-out schedule for Monday. The Sterling sees a notable lack of impactful economic data for Monday, but ongoing Brexit concerns, as well as the US President’s recent trip to the UK, will be giving traders plenty to digest as they head into the new week. Last week saw Brexit woes come to a head when several key Brexiteers within the UK’s parliament resigned from their posts within the government’s Brexit ministry in protest over Prime Minister Theresa May’s latest ‘third option’ Brexit proposal, a Hail Mary attempt to meet both hard-line leavers within the UK and EU leaders in Brussels in the middle. Neither side looks set to be particularly happy with the proposals, and the future of Brexit continues to look like a murky mess, and UK businesses are increasingly concerned that economic uncertainty will begin to hamper their growth.
GBPUSD Continues Strong
The release of the Brexit White Paper late last week also saw a fresh round of resignations from starry-eyed Brexiteers, and Prime Minister Theresa May is beginning to flash warnings of there simply not being a Brexit if hard-liners don’t begin to play ball. US President Trump visited the UK over the weekend, and was greeted by a series of protests and demonstrations, while PM May noted to the BBC that Trump’s advice on Brexit may not be a desirable route for her to take. According to PM May during her interview, Trump told her that she should sue the EU over Brexit terms, and should not “go into negotiations”, effectively pushing for an extreme, hard-Brexit scenario that would prove economically devastating for the UK and its businesses.
Sterling traders are looking forwards to Tuesday, when Average Earnings figures will be dropping at 08:30 GMT, and bulls will be looking for some good news after being hammered by Brexit woes. Earnings with bonuses are expected to hold steady at 2.5% over the previous quarter, while baseline earnings without bonuses are anticipated at 2.7%, a slight decline from the previous quarter’s 2.8%. Meanwhile Investors are on lookout for headlines from Trump’s big meeting with Russian President Vladimir Putin in Helsinki scheduled later today and release of US Retail sales data for June 2018. Tension is high in global market as investors wait for updates related to Trump-Putin summit as 12 Russians were formally indicted in the still-ongoing Mueller investigation last Friday. Expected support and resistance for the pair are at 1.3180 / 1.3155 / 1.3110 and 1.3240 / 1.3285 / 1.3320 respectively.
This article was originally posted on FX Empire
