The British currency retains the gained advantage at the trading on Tuesday, having previously reached a six-month high against the euro and strengthened by 1% against the USD on the eve, amid weakening fears about the formation of a “weak parliament” as a result of parliamentary elections in the UK.
In the run-up to the December 12 election, the prospects of Prime Minister Boris Johnson have improved significantly, as Brexit Party leader Nigel Farage said his party will not claim seats won by conservatives and will instead focus on preventing adversaries Brexit to the formation of a majority in parliament.
The pound jumped up to $ 1.2896, but then it lost a part of the gained advantage and was trading at $ 1.2860 early this morning.
The British currency also received support after data showed that the UK economy avoided a recession in the 3rd quarter of 2019, expanding by 0.3%.
In relation to the single European currency, the pound fell by 0.06% up to 85.79 pence, before reaching a peak since May 8 at 85.62 pence.
Euro against the dollar is trading without clear dynamics at around $ 1.1034, while the dollar against the Japanese yen increased by 0.22% to 109.28.
Caution prevails in the mood of traders in anticipation of a speech by the US President Donald Trump at the New York Economic Club later today, as markets are waiting for news about the fate of the trade deal with China.
The yuan added 0.2% to 7.0040 per dollar in the offshore market, while traders were waiting for developments on the trading front, and also in Hong Kong, embraced by a new wave of protests.
The New Zealand dollar dipped 0.41% to $ 0.6337, before falling 0.6% to $ 0.6326 after a quarterly study by the Reserve Bank of New Zealand, which indicated a decrease in inflationary expectations in the short term.
Due to the fact that a decrease in the rate of the Central Bank of New Zealand will increase pressure on its Australian counterpart, the Australian dollar also fell by 0.07% up to $ 0.6854.
EURUSD: Buy. Entry point – 1, 1028. Take profit – 1, 1035. Stop Loss – 1, 1010.
GBPUSD: Sell. Entry point – 1, 2840. Take profit – 1, 2800. Stop Loss – 1, 2853.
NZDUSD: Buy. Entry point – 0, 6347. Take profit – 0, 6363. Stop Loss – 0, 6321.