GBPUSD remains on the back foot amid shrinking Conservatives lead in the December elections. In the conservative manifesto, the commentaries of the leaders are criticized. Trade optimism seems to favor the greenback in anticipation of a busy schedule. Here is the GBPUSD Fundamental Analysis of 27 November, 2019.
27 November, 2019 | AtoZ Markets – With the latest polls for the December UK elections are showing a depreciation of the ruling Conservative Party’s lead. GBPUSD returns to 1.2855 as London opens on Wednesday.
GBPUSD Fundamental Analysis – 27 November 2019
Following Kantar’s 11-point lead over opposition Labor, YouGov released the results of his survey showing 11 points ahead. The Guardian mentions claims that an increase in voter registration was positive for the Labor Party. Because the younger voters said they mainly biased to the left.
The conservative manifesto is already criticized for its omission of defense. And its failure is to mention the promises on the National Health Care System (NHS) and the Brexit deadline. The toll on critical conservatives add to the party’s political pessimism in power. The Independent claims that the former Chief Justice accuses British Prime Minister Boris Johnson of being a “risk-taker” who “risks his arm.” It happens at the time of expressing a general criticism of the Lancaster Duchy’s mistake.
Elsewhere, the United States (US) president has maintained hopes of a phase-one deal with China. However, press releases from the dragon nation alleging unfair behavior in the United States. Despite this, the US dollar (USD) remains a buyer primarily because investors remain confident in the greenback during the period of risk.
CPI Index and Core PCE
No major data/event is in the United Kingdom. The US economic calendar fills with key readings. That is ranging from the second version of the third-quarter gross domestic product (GDP) to October orders durable goods. In addition, personal income and spending data in the US, combined with the Core Personal Consumption Expenditure (CPI) index, will also decorate the flow. TD Securities expects core PCE to remain around 0.7% from last year while expecting durable goods orders to recover to -1.0% %.
As markets concern about trade issues, weak US consumer sentiment data has had virtually no impact on the dollar. US consumer confidence dropped for a fourth straight month in November. It is despite expectations of a slight rebound, despite concerns over current economic conditions and job prospects. Another report released on Tuesday revealed an unexpected drop in new home sales last month. But September’s data revised upwards to show that purchases reached their highest level in more than 12 years.
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