- GBP/USD keeps previous day’s recovery moves to print second weekly run-up.
- Brussels, London up for releasing Brexit progress early Thursday morning in Europe, rumors favor a trade deal before holidays.
- US President Donald Trump obstructs stimulus, defense bill.
- UK bans travel from South Africa over covid variant, vaccine providers say they can cure the virus strain.
GBP/USD eases from the intraday high of 1.3563 to 1.3550 while heading into the London open on Thursday. Even so, the Cable prints 0.30% gains on a day while rising for the second consecutive week. In addition to the recent chatters over a Brexit deal, waiting for a confirmation from the European Union (EU) and the UK, US dollar weakness also favor the pair buyers. However, odds of a no-deal or extended Brexit talks can’t be ruled out and hence warrants caution.
The UK’s readiness to take 25% fees from the bloc’s fishers in British waters, versus the previous demand of 35% value of fish, increases the odds of a trade deal between the ex-neighbors. French officials, who earlier held back the talks on the issue, termed it as the “huge concessions”.
Though, Reuters quote British Housing Secretary Robert Jenrick who said, two significant issues – fishing and competition – still remained to be resolved and that there had not been sufficient progress for a deal.
The Sun conveyed a tentative time for UK PM Boris Johnson’s Brexit announcement, around 11:00 AM GMT, while a spokesperson for the bloc’s Chief Brexit Negotiator Michel Bernier said that the European Commission statement on the UK trade deal is expected on Thursday morning.
Other than the Brexit announcements, GBP/USD traders will also watch developments at Capitol Hill after US President Trump turned down the defense bill and stimulus. While nothing negative is likely to roll out from the Congress, any surprises will be cheered amid the present cautious optimism.
It should also be noted that the UK recently banned travel from South Africa while tracing the latest variant of the coronavirus (COVID-19) to the nation. Even so, vaccine manufacturers like Moderna expect their covid vaccine to protect from the virus strain.
Technical analysis
An upside break of the weekly resistance line, at 1.3562 now, will not hesitate to cross the monthly peak surrounding 1.3625.
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