Potentially Hazardous Market Conditions Ahead of UK Elections
Dear Trader, The polls have closed and election night is upon us. There are 650 seats in the House of Commons up for grabs, meaning the winning party needs 326 to claim a majority.
Wednesday 11th December: Dollar Subdued Ahead of FOMC.
Europe’s shared currency pencilled in a reasonably solid performance against the buck Tuesday, adding more than 28 points, or 0.26%. Upbeat ZEW metrics for Germany, nevertheless, failed to excite traders.
Tuesday 10th December: Technical Outlook and Review.
Europe’s shared currency concluded narrowly mixed against the buck Monday, underpinned by H4 support priced in at 1.1055 and a 50.0% retracement ratio at 1.1048. Beneath here, traders’ crosshairs are likely fixed on December’s opening value at 1.1023 that aligns closely with a trend line resistance-turned support, taken from the high 1.1173
Monday 9th December: Weekly technical outlook and review.
In view of GBP/USD bulls enhancing their position, the resistance area at 1.3019-1.2975 yielded ground, as did Quasimodo resistance at 1.3102 (both now acting supports).
Friday 6th December: Dollar Trades Lower Ahead of Critical NFP Data.
The British pound continued to flex its financial muscle against the US dollar Thursday, ascending to a fresh peak of 1.3166 and adding 0.41%. Underpinned by a clear Tory lead on Labour, with latest polls maintaining the differential at 10 points, GBP/USD trades at approximately 2.00% on the week.
Thursday 5th December: Dollar Explores Lower Ground for A Fourth Successive Session.
An outperformer on the day, the British pound scored fresh monthly highs of 1.3120 against its US counterpart in recent movement. A blend of upbeat UK data and election polls favouring UK PM Johnson’s Conservatives provided support.
Wednesday 4th December: Dollar Subdued on Global Trade Concerns.
Cable traded firmer Tuesday amid hotter-than-expected UK Markit Construction PMI, and latest election polls displaying a widening lead in favour of Conservatives.
Tuesday 3rd December: Dollar Tanks Amid a Fresh Flare-Up in Trade Tensions.
Europe’s single currency strongly advanced against its US counterpart Monday, adding more than 60 points, or 0.58%. The buck turned lower following US President Trump’s announcement of steel and aluminium tariffs on Brazil and Argentina.
Monday 2nd December: Weekly technical outlook and review.
Friday had Europe’s shared currency a shade higher against the buck, recording a session low at 1.0981 and highs of 1.1028. On the data front, annual Eurozone inflation rose 1.0% in November 2019, up from 0.7% in October.
