GBPUSD is taking the bids for the first time since Monday. The Conservatives continue to lead polls despite allegations of usurpation of the Labor Party manifesto. Brexit Party will unveil its policies while the UK’s first Preliminary PMI will also be the key to watch. Here is the GBPUSD Fundamental Analysis of 22 November, 2019.
22 November, 2019, AtoZMarkets – Given the evolution of trade sentiment in the market, the GBPUSD is in a three-day downtrend. And it closed at 1.2920 before the opening of Friday’s session in London.
GBPUSD Fundamental Analysis – 22 November 2019
The recent recovery could partly attribute to silence before taking a decisive turn in the US-China trade fight. The US could delay tariff increases on 15 December. CNBC news that China still has US trade negotiators on its invitation list. That triggered a risk recovery. Despite this, Beijing has severely criticized the US Navy’s claim of “freedom of navigation” in the South China Sea.
On the other hand, the Conservative Party in power in the United Kingdom (UK) is under attack for parodying the opposition Labor Party manifesto. Earlier, the Conservatives were blamed for their fact-checking system on Twitter. However, nothing stops the polls to keep the Tories in the lead, as does the latest edition of Ipsos MORI.
The Brexit Party is preparing to publish its policy later in the day. That amid calls from leader Nigel Farage to conclude a “contract with the British people.” Aside from Brexit, Mr. Farage’s anti-immigration gesture has always been criticized, which could, in turn, entertain the market during the day.
UK PMI Statistics
On the economic calendar, traders expect Markit to release the preliminary results of the United Kingdom’s Manufacturing and Services Purchasing Manager Index (PMI). Besides, the US PMI and the Michigan Consumer Sentiment Index will also decorate the line.
“This month, it’s the first flash PMI for the UK.” For the manufacturing PMI, we expect a slight pullback to 49.3 (market: 48.8), as the uncertainty surrounding the elections weighs. Traders hope for a China-US trade agreement in Phase one and the decline of the chances of a hard Brexit. Those should help keep the PMI above its lowest levels of the summer. They also anticipate upside risks for the services PMI, which forecast to increase slightly from 50.0 to 50.4 (market: 50.1), “said TD Securities.
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