British Pound (GBP) Latest: GBP/USD Rides the Wave Higher on Georgia Votes
GBP price, Georgia vote news and analysis:
- Georgians look to have voted for the Democratic candidate in one of the Senate seats on offer in the state and are tipped to have elected the second, making it easier for President-elect Joe Biden to push legislation through Congress.
- While neither result is yet confirmed, the US Dollar is weaker and currencies like GBP are moving higher and could yet gain further.
GBP/USD firm on Georgia Senate votes
The US Democrats look to have won one of the Senate seats on offer in Georgia after voting there, and could well win the second. That would take them level with the Republicans in the Senate but with an effective majority as Vice President-elect Kamala Harris would have the casting vote.
Wins would give the Democrats not just the Presidency but both Houses of Congress, helping Joe Biden to push through legislation on, for example, a new fiscal stimulus program. Until the Democrats are confirmed as winners uncertainty remains. However, the safe-haven US Dollar is widely lower Wednesday, and risk-on currencies like GBP are firmer – trends likely to continue unless the final vote counts prove the predictions wrong.
GBP/USD Price Chart, One-Hour Timeframe (December 29, 2020 – January 6, 2021)
Source: IG (You can click on it for a larger image)
As the chart above shows, GBP/USD has now recovered more than half of Monday’s steep losses and could well strengthen short-term to the January 4 high at 1.37. As mentioned earlier, though, this is dependent on confirmation that Georgians have elected the Democratic Party candidates in both Senate seats up for grabs.
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--- Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.