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GBP/USD trades higher ahead of Johnson-Corbyn debate

06 Dec 2019

Investors keep an eye on the developments of the trade war, following a report saying that talks are still on track. U.S. President Donald Trump had said a similar statement previously. The next round of tariffs is set to be put into effect on December 15th. 

The EUR/USD pair went up to the 1.11 region, following news on the trade war dispute. Resistance now lies at the 1.1115 handle – which is also Thursday’s high.  Markets reacted positively to China implementing tariff waivers for a number of U.S. agriculture products. 

U.S. November Non-farm payrolls are expected to mark an increase of around 180,000 positions. In October, results came out at 128,000. The U.S. unemployment rate stands at 3.6%, growing towards lows. In addition, Average Hourly Earnings are to rise by 3% annually.  

There was a drop of 1.07% in German Industrial Production last month, highlighting struggles for Europe’s largest countries. Previously, Germany – the strongest economy in Europe, avoided falling into a recession. 

In the UK, the Conservatives remain in the lead for the upcoming December 12th general election. Ahead of a debate between Boris Johnson and Jeremy Corbyn, the GBP/USD trades at 1.3150. A Conservatives victory would push Johnson’s side forward with a 10-point advantage over Corbyn’s Labour. 

It is expected that there were 10,000 more jobs last month in Canada, whilst holding a 5.5% unemployment rate.