New York

36912

London

36912

Tokyo

36912

GBP/USD continues to build momentum

29 Nov 2019

On Friday, the EUR/USD trades over the 1.10 handle whilst the GBP/USD is around the 1.29 range. Trades focus on the release of Euro-zone inflation figures and German employment data. A poll by YouGov’s MRP favoured a Tory victory for the upcoming election. 

Holding above the 1.10 key psychological mark, the EUR/USD saw quiet trading action during Thursday’s holiday. There were no developments in the trade war dispute, helping to boost the demand for the U.S. dollar. Despite doing well, the pair did not have bullish conviction due to German consumer inflation figures coming out softer than expected. 

The inflation results conveyed that the headline CPI is predicted to increase at an annualised rate of 1.1% and contract 0.8% on a monthly basis in November. The HICP showed prices in a decline of 0.8% inter-month and rising 1.2% year-on-year. November’s Euro-zone CPI print is likely to influence the pair and introduce positive opportunities of trade. 

The Cable continued to build on its momentum, adding follow-through traction on Thursday. The poll indicated that UK Prime Minister Boris Johnson will be victorious with 359 seats as against 211 for Labour, 13 for LibDems and 43 for SNP. 

Investors will be taking a close look at the total consumer spending made during the Thanksgiving holidays and Black Friday sales, to have a better perspective of the economy’s situation.