Good day traders! Check now the most recent charts and market updates for today’s session. Learn more about analysis and be updated on the current happenings in the market!
The greenback didn’t stand a chance against the power of the British pound right after the UK election yesterday, December 12. The GBPUSD pair is now at levels last seen more than a year ago, or since June 2018. The pair is still expected to climb to its resistance and peak to April 2018 highs in early January as the BPM prepares to deliver his January 31 Brexit promise. The unstoppable force that the British pound gain pushed the dollar on the defensive. Although yesterday, the buck tried to resist at first, but it eventually failed after the election results showed a whopping 358 seat majority snatched by the Tories. Meanwhile, the opposition Labour Party was able to clinch 203 and the Scottish National Party with 48. Officials in Europe and even US President Donald Trump congratulated Johnson’s success in Britain’s election. Some even said that his win means that the divorce between the EU and UK is inevitable.
The UK election didn’t just affect the pound, it also propelled the single currency upward against the greenback in sessions. Unfortunately for bears, the recent trade war news and the US Federal Reserve’s decision were easily overshadowed by the European Central Bank and Britain’s election. ECB’s new head, Christine Lagarde gave a very political statement in her first monetary policy meeting. The former IMF chief carefully chose every word and successfully avoided triggering the euro to go downward as what most central bank leaders unintentionally do during their debut monetary policy meetings. The majority seat snatched by the Conservative Party and Boris Johnson’s win against his rival Jeremy Corbyn raised hopes for a smoother exit for the United Kingdom from the European Union. This ensures less impact not only on the pound sterling but also on the bloc’s single currency.
After Boris Johnson and the Conservatives swept the UK elections yesterday, the British pound sterling received a jolt that gave it a boost upward against the Swiss franc. Aside from that, the recent progress from Washington and Beijing’s trade conflict also drained the energy of the franc. The pair is on the verge of hitting its resistance, which currently stands on levels last seen in March and May. The safe-haven appeal of the beloved franc continues to falter following the recent signing of the US President Donald Trump to a partial agreement with China. The decision of the Swiss National Bank to hold on to its current rates on Thursday didn’t even help restrict the pair’s rally in sessions. It is suspected that the pair will climb to its resistance in the near-term run, either late December or early January. However, whether it will break past it relies on the shoulders of the BPM and his January 31 Brexit endeavors.
Pound sterling bulls are on a roll this Friday. The Canadian dollar tried to hold itself against the British pound earlier in the week as election jitters kick in then. But things quickly turned futile when Boris Johnson swept the UK elections on Thursday. Luckily for the pound, traders easily brushed the poor data from the UK’s economic activity as the hype around the election serves as its main upward driver. Earlier this week, the UK Office for National Statistics released dull figures from the country’s GDP growth. On an annual basis, the UK gross domestic product contracted from 0.9% to 0.7%. Actually, Canada also produced disheartening numbers from its economy’s performance despite the BoC citing the robust economy of the country earlier this December. The dull employment change, unemployment rate, housing starts, and building permits reports heavily weigh on the Canadian loonie.