Pound sterling, Brexit and UK PMI trending points
- Brexit discussions are back with a whole shebang, as PM May called UK lawmakers to back her Brexit plan
- UK PMI beats expectation, as the Britain’s FTSE 100 secured gains on the consecutive day
- Amid Brexit chaos, the pound sterling seems to be holding on, as US posted soft employment data and a chance of another rake hike seems to be on the hold, as Fed Chair signalled a pause to pull off the triggers again.
Pound sterling prepared for next round of Brexit discussions
In the latest attempt of UK PM Theresa May to enforce her immensely unpopular Brexit bill, the UK government had published a guidance on how public could prepare themselves for a no-deal Brexit. The pound sterling seems to be holding on, as US posted soft employment data and a chance of another rake hike seems to be on
The campaign seems to spread fear across the UK population, to lure them in to the favour of a Brexit deal. According a recent survey conducted by the Economic and Social Research Council, data revealed how unpopular the latest Brexit deal had been. In a two-choice vote, “either to leave EU without a deal, or to support PM May’s Brexit deal”, 60% of the respondents had been found opposing the PM May’s Brexit deal.
Next week, the UK lawmakers would return to the Westminster for discussing the terms of Brexit ahead of an anticipated Brexit vote, while the vote might spread chaos including volatility in to the currency market.
However, for now, the Great Britain Pound seems to be supported somehow, as the PMI data beat expectation and market outlook for American dollar is dwindling amid Government shutdown, a dovish talk from US Fed Chair Jerome Powell in the wake of a withering risk of higher recession and a sluggish global economy.
In terms of domestic economy, the UK stocks had been performing well for the past couple of days, while Britain’s FTSE 100 had been sailing with the tide, and securing over 2 percent of gains on the consecutive days.
In contrast to the US economy, UK economy appears to be sounder except the Brexit chaos, as the Pound sterling has been in an upwind momentum, residing at $1.2732, in the 4thof January, Friday, GMT. 17.30.
GBP/USD daily chart
It is no wonder that the GBP/USD pair would be dominated by US data throughout the year, as the global economy has been surrounding itself with a number of unnerving factors including global scale economic slowdown, US-China trade war and partial US government shutdown.
At this moment, the GBP is looking forward to the Brexit headlines for new directives and despite that fact, a stronger UK economy is backing the currencies, alongside stocks, while the global stocks had been tottering alongside, US stocks this week.
When it comes to outlook, the GBP seriously lacks an upbeat momentum except Brexit talks and in the wake of a stockpile of tempestuous economic data, all over the world, the Great Britain Pound seems to be stuck in a tight range between 1.2680-2780, while a break above its initial resistance level at 1.2780 might not come unless a prepotent Brexit headline emerges.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]