Pound bulls will have departed from their desks yesterday evening rejoicing. Wednesday proved to be a superb day from the recently troubled currency as participants pushed it above key resistance levels, opening up the path for higher prices. While a further move to the upside is absolutely not a guarantee, the fact the pound has quite convincingly surpassed these crucial levels with a week to go before the big day can only be seen as a positive.
Yesterday’s services data from the UK beat forecast but remained in contractionary territory. While this may be a worry for the Bank of England, the traders & dealers who are influencing the pound’s direction are only focused on one thing – next week’s general election. They will be hoping for an outcome which produces political certainty and one which allows the UK to move on from the political paralysis which has put huge strain on businesses and individuals up and down the country. When some form of certainty arrives, no doubt the economy will push forward full-throttle.
Today’s economic calendar has something for everyone. In the morning we will be monitoring eurozone retail sales, GDP, employment numbers and there’ll also be Eurogroup meetings. In the afternoon, the US will take the data baton featuring factoring orders and jobless claims. The currency to watch in today’s session will be the pound to see whether it can improve on yesterday’s gains or give some back!
Written by Viv Savani. 8:55am, December 5th 2019
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