GBP/USD Boosted by Election Poll, USD/JPY Drops on Trade War Latest - US Market Open
MARKET DEVELOPMENT – GBP/USD Boosted by Election Poll, JPY Jumps on Trade War Latest
DailyFX 2019 FX Trading Forecasts
GBP: Weekend polls continuing to move in favour of the Conservative party has seen the Pound open on a firmer footing to begin the week. According to the latest Politco poll of polls the Conservative party is average 41% (2ppts shy of its peak in the run up to the 2017 election), while the Labour party are at 29%. Consequently, a Conservative majority is becoming increasingly likely with bookmakers pricing in such an outcome at 63%. However, while GBP/USD has pushed higher, 1.3000 remains the stumbling block for the pair and thus gains are somewhat limit in the run up to the election.
JPY: Risk sentiment swings as the mood music surrounding US-China trade deal hopes begins to fade yet again. Reports from CNBC that China are pessimistic on a trade deal after President Trump recently stated that he would not offer a tariff rollback (full tweet) has subsequently led to a pullback in equity markets, while safe-haven flows have pushed gold and JPY higher. USD/JPY back below its 200DMA (108.99) and as such eyes a test of support at 108.40 (rising trendline).
Source: DailyFX, Refinitiv
Economic Calendar (15/11/19)
WHAT’S DRIVING MARKETS TODAY
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--- Written by Justin McQueen, Market Analyst
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