- GBP/USD consolidates losses after registering the worst week in years.
- UK PM takes a step further towards Brexit, via WAB, despite being criticized by the ex-Tory member.
- Fears of ‘Valentine’s massacre’ and US warning weigh on the optimism.
GBP/USD traders seem to ignore waning political optimism at the UK as the Cable pauses the previous week’s declines while taking rounds to 1.3010 ahead of the London open on Monday.
The UK PM Boris Johnson managed to get his EU (Withdrawal Agreement) Bill (WAB) passed through the new Parliament. However, the House of Commons is yet to pass the bill but will have lesser stops considering the Tories’ majority.
Even so, a veteran former Conservative MP, Ken Clarke, criticized the UK PM Johnson for only promoting ideas while lacking the key Brexit details. Mr. Clarke also mentions, as per the Independent, that the Tory leader lacks power in his own government. Additionally, news of Dominic Cummings’ likely Valentine’s massacre, as said by the UK Express, also haunts the UK political watchers.
Increasing the pessimism surrounding British politics is the US President Donald Trump’s warning to not include any climate change issues while talking trade. This seems to be a sudden U-turn from the UK PM Johnson’s friend who repeatedly praised the Tory leader ahead of the general election.
On the other hand, the US Dollar (USD) register broad declines after the news of the US-China phase-one deal fails to overcome China’s warning to the US to not interfere in internal matters.
Moving on, holiday mood is likely to limit market moves with the emptiness of the UK calendar adding burden on the pair traders. However, the US data concerning Durable Goods Orders, Chicago Fed National Activity Index and New Home Sales could entertain traders.
Technical Analysis
Unless providing a daily closing beyond 21-day Exponential Moving Average (EMA), at 1.3065 now, prices keep declining towards a 50-day EMA level of 1.2930.
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