Brexit Negotiation Pushes Pound Higher

November 23, 2020

The British Pound Pushes Higher, Backed by EU/UK Negotiations and Vaccine Optimism

by Bog& Giulvezan

The Pound opened the workweek happening a positive short letter, showing strength against its major counterparts and moving above 1.3350 against the greenback, trading at 1.3370 at the time of writing. Virtually of this specialty was generated by optimism coming from deuce fronts: EU/UK trade deal negotiations and news program that AstraZeneca/Oxford vaccinum is showing very promising results.

Over the weekend it was said that British Chancellor Boris Johnson is likely to interpose during the course of instruction of the stream week and take a discussion with Ursula von der Leyen, the President of the Continent Committee, to find a polysyllabic-awaited solution to the deal out deal negotiations. As always, he mentioned he is not willing to via media at any expense, merely eventually again, we are inching closer to the conclusion of this thorny problem that's been going on for age.

In other news, regarding the vaccine, AstraZeneca released results that demonstrate 70% effectiveness when the vaccine is administered in two to the full doses, one calendar month apart and 90% effectiveness when a half a dose and a inundated dose are administered one month apart. While this seems less effective than the vaccines of Moderna and Pfizer, it must be noted that AstraZeneca's vaccine is significantly cheaper and it doesn't need to Be transported in refrigerators, which makes statistical distribution easier and cheaper.

Key out Events for the Week Ahead

Today at 3:30 pm GMT, the Monetary Policy Report Hearings start, and BoE Governor alongside several MPC members will testify before the Parliament's Treasury Committee on inflation and the economic mindset. The hearings usually last a few hours, during which the currency market may experience volatility.

Wednesday, November 25 bequeath be the about important day of the week for the US Dollar as the USA Prelim GDP comes out at 1:30 pm UT (expected to testify an annualized modification of 33.1%) and is followed subsequently in the day, at 7:00 pm GMT past the FOMC Meeting Minutes. This is a comprehensive describe of the latest FOMC Meeting, which offers insights into the economic and business enterprise reasons that determined the worry rate voter turnout. Depending happening the tint used end-to-end the report, it may have a strong impact on the greenback.

Chart Psychoanalysis – GBP/USD

The Pound is boosted by positive sentiment, while the US Clam is attenuated by investors moving into riskier assets. All this translated into a strong climb for the pair off, after a bounciness at 1.3100 support.

The next important level is 1.3400, which is technical/psychological resistance and a break would score a major victory for the bulls. Until that level is surpassed, we are not dealing with uptrend resumption, but the bias is bullish, thence the probability of a prison-breakin is relatively high.

The RSI is moving upwards, without beingness overbought, spell the MACD lines are feast apart and moving upwards also, which shows that the indicators harmonize with the toll natural process seen connected the graph. Keep in mind that reversals may occur around 1.3400 and that the currency markets Crataegus laevigata live influenced by the EU/UK trade negotiation and other fundamental reasons.