GBP: Houston, We've Had A Problem
Helen Rush | Nov 13, 2017 06:55AM ET
Pardon the phrase, but something is rotten in the United Kingdom.
The country is torn in pieces. The prime minister has already lost some of its chess pieces, and this time 'the queen' is 'in check' herself. The news broke that 40 Conservative members of Parliament have agreed to sign a letter of no-confidence in Theresa May. They need only 8 voice votes to initiate the process of changing the leader.
Last week the Pound showed resilience in spite of the uncertainty around the disruptive Brexit. This time GBP could not stand the news. The currency slumped 0.7% against the dollar and tested the lows at 1.3061. The political factors are too strong, and it will be difficult for the economic data to draw markets’ attention. The bulls will expect some hawkish or, at least, consolatory comments from the Bank of England's Governor Carney this week.
At the same time, ‘the lion's share’ of attention will concentrate on the UK inflation data.
The downside is limited by November, 2-3 support line at 1.3040-50. Anyways, GBP/USD has to surpass the 1.3200-30 area to start the sustainable growth.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.