The US dollar changed little in Asia on Wednesday. Here is the GBPUSD Fundamental Analysis for 30th October 2019 following the Fed Meeting.
30 October 2019, AtoZMarkets – The Fed is expected to cut rates for the third time in a row after its two-day meeting on Wednesday. The US dollar index following the greenback against a basket of other currencies was little changed at 97.498 at 12:50 ET (0450 GMT). Tensions between Beijing and Washington have resurfaced after the United States and 22 other UN countries urged China to stop detaining ethnic Uighurs and other Muslims.
GBPUSD Fundamental Analysis – 30 October 2019
Zhang Jun, China’s ambassador of the UN, said the criticism that it does not help have an excellent solution to the trade negotiations issue. It is hard to imagine that, you are trying to conclude a trade agreement. And that, on the other hand, you are using any issues, especially human rights, to blame the others, he said.
US President Donald Trump and Chinese President Xi Jinping could sign a first-stage trade deal at the Asia-Pacific Economic Cooperation summit in Chile in November. Trump stated last week that a trade deal with China was ahead of schedule. But he did not provide more details. Annual CPI inflation has risen by 1.7%, which is also in line with expectations.
The GBP / USD also remained stable at 1.2862, after UK legislators voted 438 to 20 to uphold an early general election on 12 December. The amendments to the bill, including another election date, 9 December, and lowering the voting age to 16, were rejected earlier. There has been no general election in the United Kingdom in December since 1923.
Pound Needs More Than Election Date to Support October’s Rally
Pound traders will become unlikely to find that the promise of an election in the UK in December. That will allow them to escape the Brexit maze. The currency reduced its losses after the Labor Party backed the government’s plans for an early poll before legislators voted on the decision later on Tuesday. It is unlikely that an election will plunge the pound with the conservatives ahead in the polls, say the strategists. But the result of Brexit is sufficiently uncertain that it also won’t prompt a massive rally either.
The most severe long-term structural risks facing the United Kingdom, a no-deal crash out, have virtually evaporated, said Ned Rumpeltin. He is the Head of European Currency Strategy at Toronto-Dominion Bank. There is much good news in the price. And the headlines might not be as constructive once we get into an election cycle.
The pound is going towards its best month against the dollar since January 2018. That happened with no-deal Brexit risk decreased after lawmakers voted to force Prime Minister Boris Johnson to seek an extension of time. The election now seems to be on the verge of becoming a proxy vote on membership of the European Union.
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