Here is the GBPUSD Fundamental Analysis of 30 December, 2019. GBPUSD remains in the spotlight for the fifth consecutive day, at its highest level since 19 December. The Brexit party leader Nigel Farage’s former adviser, Trixy Sanderson, reported on the EU’s preparations for a no-deal departure. The market has lost interest in the greenback due to phase-one calls rise, but the political divide between the United States and China remains. Meanwhile, do not forget to check the 2020 New Year Forex trading hours and global schedules so that you can schedule ahead.
30 December, 2019 | AtoZ Markets – GBPUSD takes the bids to 1.3115 as it heads towards the London open on Monday. GBP fails to express the fears of Brexit, cited by the former diplomat, while the USD continues to fall in all areas.
GBPUSD Fundamental Analysis – 30 December 2019
The European Union (EU) is preparing no-deal because “they finally understood “. The UK Express recently published the news, quoting the Brexit party leader Nigel Farage’s former adviser Trixy Sanderson. Moreover, he said that Sanitary-Phyto Controls, as well as the increased chances for the World Trade Organization (WTO), styled departure, to support expectations.
On the other hand, China is ready to respect the conditions of the phase-one. However, fears of conflicts around Taiwan, Hong Kong and Xinjiang keep pressure on the greenback. Besides, increased optimism over commodities and unfavourable trading conditions also contributed to the strength of the pair.
The risk tone of the market was also weak, as yields on the 10-year US Treasury and the S&P 500 trimming the early-day gains.
The end of the year may continue to haunt traders. Second-tier data from the United Kingdom and the United States may offer intermediate movements in the pair. It is important to mention that trade/Brexit headlines will also play their role in entertaining traders.
US China Trade Agreement
The US dollar continued to fall on Monday morning in Asia, with the greenback slipping for the third day in a row. The US dollar index was down 0.17% to 96.75 at 10:30 p.m. (03:30 GMT). However, the dollar lost ground against most currencies in the region, with a relatively thin trade before the New Year’s holiday on Wednesday.
Meanwhile, markets continue to wait impatiently for the signing of the first phase of the US-China trade agreement. But markets are also on the lookout for any spikes in tension on the Korean peninsula. It is mainly the missile tests in North Korea around the New Year.
China’s official purchasing managers index (PMI) is due to be released on Tuesday, followed by Caixin’s PMI on Thursday. Both of which will indicate the state of the Chinese economy.
Over the weekend, the PBOC ordered the adoption of a new approach to pricing credit. Lenders will have to move to a new prime lending rate (LPR) from 1 January. The LPR is set at 4.15% for a one-year loan, which is lower than the current reference rate of 4.35%.
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