Here is the GBPUSD Fundamental Analysis of 20 November, 2019. GBPUSD down for the second day in a row due to doubts about the Conservative leader’s public favor after the ITV debate. The strength of the dollar offers additional weakness to the pair. FOMC minutes, trade/political headlines in the limelight.
20 November 2019, AtoZMarkets – Given the recent decline in the UK PM’s favorite status, the GBPUSD pair extends weakness. And it is trading around 1.2915 as the London opening approaches on Wednesday.
GBPUSD Fundamental Analysis – 20 November 2019
The ITV debate between the Conservatives and opposition Labor leaders was less dramatic. Yet, both showed calm while sticking to the Brexit parties and the second referendum. However, the poll at the end of the debate surprised the cable traders. British Prime Minister Johnson won only 51% of the vote while opposition leader Jeremy Corbyn won 49% of the vote. So far, major surveys have continued to show nearly 14 points of difference with the conservative leader in the lead.
The British PM refrains from publishing the report on Russian interference in the Brexit referendum and the abandonment of the corporate tax cuts. But the challenges are also facing the Conservative leader. That is at the recent polls at the end of the ITV’s face-to-face debate.
The pair reversed from its monthly high on Tuesday. Optimistic data on the US housing market and the US Federal Reserve (Fed) policymakers John C. William continued support for the current monetary policy. That has satisfied the greenback’s buyers.
The US dollar (USD) extended its gains Wednesday in a context of new risk. That followed by the fight between the US and China on the Hong Kong bill. The tone of risk is also growing during ongoing protests in Hong Kong and Israel. As a result, 10-year US Treasury yields fall to 1.75%.
FOMC Monetary Policy Meeting
The minutes of the FOMC meeting on monetary policy will decorate the economic calendar, while trade/ political headlines could keep traders busy. “The FOMC meeting minutes of October 29 and 30 are expected.” The main change at the October meeting was the adoption of a more reactionary stance – the FOMC will now “evaluate the way forward. “Whereas previously it was” doing the right thing. “Given that President Powell believes the US economy is doing well. The FOMC’s view of the risks to the outlook will be of great interest. the minutes, “says Westpac.
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