GBP/USD jittery awaiting joint statement from May and Juncker
- GBP/USD to become volatilie?
- GBP/USD awaits joint statement.
The GBP has been broadly higher amid hopes that the UK/EU can reach an 11th hour deal on key stumbling blocks – the “divorce” bill, EU citizens’ rights and how the border between Eire and Northern Ireland will function.
All about cable
However, the pound had taken a dip below the 1.35 handle (1.3474) as NY trades through the morning on news that we are expecting a joint statement from May and Juncker having met today in Brussels and lunching together, making for some volatility. Currently, GBP/USD is trading at 1.3496, up 0.19% on the day, having posted a daily high at 1.3541 and low at 1.3419.
GBP bid on data as well
We should now here what progress will be made that could be paving the way for a broad agreement on separation at the Dec 14th summit. also, to note, that positive data had added to the lift in the GBP on Monday, with the Markit/CIPS Construction PMI rising to 53.1 last month, as noted by analysts at Scotiabank.
The analysts at Scotiabank explained that GBP/USD is poised to retest last week’s peaks around 1.3550, with the early bid for Cable effectively delivering a solid rebound from the mid 1.34 level on the intraday chart. "The GBP’s broader progress since the early Nov test of key trend support on the longer run charts suggests a push to the low/mid 1.36 area is possible near term and a rally towards 1.40 cannot be excluded in the longer run – provided that the pound can establish a foothold above 1.3550 in the next day or so."