Sterling creeps higher, how much is left in the tank?
The pound edged mildly higher yesterday, establishing itself nicely within the $1.31 and €1.18 handles against the US dollar and euro, respectively. The gains are slowly losing their potency as we get closer and closer to the key date. Many participants are scratching their heads wondering how much more is left in sterling’s tank. Signs are pointing towards ‘not much’.
Key technical indicators are gravitating towards this recent move becoming stretched while pressure is mounting for Boris Johnson to face more scrutiny. Last night a poignant clip of the BBC’s Andrew Neil calling out PM Johnson for not facing his questions went viral. 6 days is a long time in politics, especially in the run up to an election, if such stories, of his lack of willingness to face scrutiny, continue to pick up then he ‘May’ face a similar problem as his predecessor encountered by refusing to debate Jeremy Corbyn at the ‘17 general election.
Focus today will be on the non-farm payroll release from across the pond. This means the currency on watch today will be the US dollar. The midweek private payrolls data did not suggest today’s number would be a strong one but it cannot be ruled out. The number will cross news wires at 13:30 and could create volatility as we wind down to close the week.
Have a good weekend.
Written by Viv Savani. 8:33am, December 6th 2019
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