- Brexit impasse, renewed risk-off wave amid trade concerns knock-off the Cable.
- Eyes on UK political and trade updates amid lack of relevant fundamentals.
Amid a renewed risk-aversion wave, the risk currency pound ran through fresh offers, knocking-off the GBP/USD pair to fresh daily lows near 1.3030 level.
The Cable is facing a double whammy, with escalating US-China trade tensions denting the appetite for higher-yielding currencies such as the GBP on one hand. Meanwhile, on the other hand, rising political uncertainty in the UK surrounding the Brexit deal and the failed cross-party Brexit talks add to the weight on the pound.
As noted by FXStreet’s Senior Analyst, Yohay Elam, “PM Theresa May is under growing pressure to step down, or at least set a timeline for doing so. Some of her colleagues at the Conservative Party want her out but have yet to agree on a successor, with many aspiring to inherit her at 10 Downing Street.”
“On the other side of the Atlantic, the US awaits a high-level Chinese delegation on Thursday for high-stakes trade talks. A crisis broke out on the weekend after Trump threatened to impose new tariffs on China on Friday. His angry tweets blamed China for backing down on commitments made in the negotiations between the world’s largest economies. Global stock markets are suffering, and GBP/USD also struggles amid the risk-off atmosphere,” Yohay adds.
Looking ahead, the risk off/on trends will continue to influence the major, as all eyes remain on the Brexit and trade developments in absence of significant macro releases from both the UK and the US.
GBP/USD Technical Levels
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