- GBP/USD prints mild gains after bouncing off July 24 low, eases from intraday high off-late.
- MPs will debate and vote on the IMB amid growing Tory rebellion, Former UK PMs also oppose breaking Brexit treaty.
- News from AstraZeneca helps to keep the risk-tone positive.
- EU-UK Brexit negotiations to resume in Brussels this week.
GBP/USD recedes from day’s high to 1.2820 while heading into Monday’s London open. Even so, the Cable prints 0.20% gains as printing a U-turn from the multi-day low flashed on Friday. Although Brexit pessimism keeps the bears hopeful, challenges to the ruling Tory government’s Internal Market Bill (IMB) suggest the European Union (EU) policymakers have friends in the UK. Hence, today’s vote In the House of Commons will be the key to watch ahead of the next round of divorce talks in Brussels.
Despite stark warnings from the block leaders and US House Speaker Nancy Pelosi, British Prime Minister Boris Johnson risks putting the IMB for a vote in the Parliament. While the Tory majority raises a few questions for the UK PM Johnson’s push, the backbenchers seem to follow former PMs, John Major and Tony Blair, to trigger cautious sentiment. If at the bill manages to cross the House, Justice Secretary Robert Buckland has already announced their wish to resign should that happen.
The seventh round of Brexit talks failed on Friday with the EU leaders warning the UK to bear the sanctions if it steps back from the original Withdrawal Agreement Bill (WAB) by respecting the IMB. The ex-neighbors will meet in the European headquarter this week for another attempt to progress on the trade deals.
Elsewhere, Oxford University backed coronavirus (COVID-19) vaccine trials will be resumed after a “routine” halt during the last week. This comes as the UK reported 3,330 confirmed new cases of COVID-19, according to government data published on Sunday, compared with 3,497 a day earlier, per Reuters.
On the other hand, reports that Iran is preparing to avenge for their commander Qassem Suleimani confronts optimism from the news that Pfizer is up for rolling out the COVID-19 vaccine by the year-end.
Amid all these plays, S&P 500 Futures gain around 1.0% whereas stocks in Asia-Pacific also print mild profits amid a light calendar.
Considering the lack of major data/events on the economic calendar, traders will keep eyes on qualitative triggers for fresh impulse.
Technical analysis
Bulls await a clear break of 100-day EMA, currently near 1.2830, before taking any entries. On the contrary, a daily close beyond 1.2760 will strengthen the bears’ grip over the GBP/USD prices.
Share
