The fundamental analysis of today’s GBPUSD shows that GBPUSD started the week above 1.29, thus maintaining its range. The latest opinion polls on the UK elections show an ongoing lead for the Conservatives.
04 November 2019, AtoZMarkets – With the increasing chances of a Tory leadership post-December election, the GBPUSD maintains the gains of the recovery while bringing the bids to 1.2940 before opening Monday in London. GBPUSD remains mostly positive in the context of declining threats to no-deal Brexit. Tories are leading the way in the polls of early elections; the risk remains on the cards. UK Construction PMI, US Factory Orders to decorate the economic calendar.
GBPUSD Fundamental Analysis – 04 November 2019
Whether youGov, Ipsos or Deltapoll, all suggest a clear lead of Tory leader Boris Johnson on the other main opposition Labor parties before the 12 December general election. However, the British Prime Minister (PM) still seems skeptical of them, because the British Prime Minister Johnson will remove the threat of no-deal Brexit from Conservative party manifesto.
President of the United States invites leaders of Southeast Asia
The news of the US-China trade deal has been mixed. Since US President Donald Trump’s optimism about the first phase of the agreement fail to conquer. The Commerce Secretary Wilbur Ross doubts over any further relationships.
The second in a row, the US president was absence at the summit of the Association of Southeast Asian Nations (ASEAN) in Thailand. That could also add to the lack of risk in the market. However, this could be mitigated by the latest news quoting President Trump’s envoy while indicating that US President Trump invites Southeast Asian leaders to visit the United States for a special summit.
UK Construction PMI and US Factory Orders
Despite this, the market sentiment has been shaken from the beginning. That is due to a lack of significant data/events and the absence of Japan. Investors will focus primarily on Brexit headlines. But they are also keeping an eye on the October Markit Construction Purchasing Managers Index (PMI) in the UK and US Factory orders for September. The market consensus is in favor of a 44.00 increase against 43.3 of the British PMI. Yet they are expecting US statistics to continue to fall to -0.3% against -0.1% prior.
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