FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
91%
HFM information and reviews
HFM
89%

Pound boosted by Brexit party decision


12 November 2019

Sterling exploded higher on Monday, gaining roughly 0.8% against the dollar after the Brexit party said it would not contest Conservative seats in the upcoming election.

This surprise development certainly comes as an early Christmas gift for Prime Minister Boris Johnson ahead of the December 12th election. Given how the prospects of a decisive Conservative win will provide some sort of clarity and direction on Brexit, the Pound is positioned to push higher in the near term. However, it will be unwise to completely rule out the possibility of Britain leaving the European Union with no deal in January 2020 thanks to the unpredictable nature of Brexit.

The fact that Sterling has appreciated against every single G10 currency despite the soft GDP data published on Monday continues to highlight how the currency remains mostly driven by Brexit and political developments. Economic growth in the United Kingdom rebounded by 0.3% during the third quarter of 2019 but annual growth was the weakest seen in almost 10 years at 1%.

Looking at the technical picture, Pound bulls are in the driving seat with prices trading around 1.2885 as of writing. A solid daily close above 1.2890 should open the doors back towards the psychological l 1.3000 level. Alternatively, sustained weakness below 1.2890 may invite a drop back towards 1.2790.

Gold sinks deeper into the abyss


Gold tumbled to a three-month low on Monday thanks to the improving market mood and cautious optimism over US-China trade developments.

The precious metal burned its way through the $1455 support level as the risk-on mood quelled appetite for safe-haven assets. Although the precious metal could extend losses in the near term towards $1440, downside losses are likely to be capped by global growth concerns and lower interest rates across the world.

Taking traders will continue to closely observe whether bears could drag prices towards $1440. Should this point prove to be a reliable support, a technical rebound back towards $1470 could be in the cards.

Share: Tweet this or Share on Facebook


Related

Dollar flat as market braces for central bank decisions later in the week
Dollar flat as market braces for central bank decisions later in the week

The dollar was up modestly in early trading in Europe on Monday, at the start of a key week for central bank meetings on both sides of the Atlantic. By 03:00 ET (08:00 GMT), the dollar index...

30 Jan 2023

Mega Central banks, OPEC, NFP & Earnings week
Mega Central banks, OPEC, NFP & Earnings week

China Stock market returns from Luna New Year break. Chinese stocks rose while most other Asian equities fell as investors looked to interest rate decisions scheduled this week in the US...

30 Jan 2023

XAU/USD remains on the defensive around $1,925 ahead of US PCE
XAU/USD remains on the defensive around $1,925 ahead of US PCE

Gold price remains on the defensive for the second straight day amid modest US Dollar strength. Thursday’s upbeat US macro data fuels hawkish Fed expectations...

27 Jan 2023

XAU/USD retreats from multi-month top amid modest USD recovery, ahead of US GDP
XAU/USD retreats from multi-month top amid modest USD recovery, ahead of US GDP

Gold price pulls away from a fresh multi-month top amid a modest US Dollar strength. Bets for smaller rate hikes by Federal Reserve, recession fears should help limit losses...

26 Jan 2023

Microsoft: Still Trapped Within Descending Channel
Microsoft: Still Trapped Within Descending Channel

Microsoft Corp., an American multinational technology conglomerate currently ranked the third largest company by market capitalization ($1.728T) which actively engages...

24 Jan 2023

Same story new week
Same story new week

Chinese New Year celebrations – many centres are closed in Asia. Treasuries sagged to end on a bearish week. USDIndex at 101.30 low as the market continued...

23 Jan 2023


Editors' Picks

FXCM information and reviews
FXCM
87%
ActivTrades information and reviews
ActivTrades
86%
RoboForex information and reviews
RoboForex
85%
MultiBank Group information and reviews
MultiBank Group
84%
Libertex information and reviews
Libertex
83%
Vantage information and reviews
Vantage
83%

© 2006-2023 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.