GPB/USD Volatility and Trade Tariffs Watch

Published on: 07/26/19 9:11 AM

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Category: Newsletter

The last week of July 2019 witnessed frenzied trading as the FX Market responded to PMI’s, GDP’s, geopolitics and economic policy pronouncements. Boris Johnson’s Premiership hogged the limelight with Brexit jitters back on the front banner. Forex Broker comparison service FXBrokerFeed brings you the latest news and updates in the FX Broker Market, featuring the GPB/USD currency pair and a Trade Tariffs Cliffhanger.

GPB/USD in Dovish Volatility

Boris Johnson took over as UK Prime Minister as anticipated.  BoE dovish forward guidance pronouncements calmed markets ahead of Monetary Policy Committee (MPC) meeting August 1 expected to manage inflation to a sustainable 2% target. The incoming Prime Minister’s assurances for a new and better partnership with Europe with or without a Brexit deal will continue to concern the market in the mid-term. Sentiment pushed the GPB/USD past the 1.2433 early Friday-handle with resistance pegged at 1.2500, still way below the June high at 1.2784. The US Ambassador to the UK Friday statement to Radio 4 of US President Trump’s intention to negotiate a trade deal with the UK offered brief tactical relief. But it ought to be viewed in tandem with US House of Representatives Speaker, Nancy Pelosi’s earlier warning on Thursday. She indicated that Congress would not endorse a trade deal if the Belfast Agreement was jeopardized by Brexit. Mixed signals piled to contain the pound in range formation.

US/China Trade Tariffs Hope

The trade tariffs war between the world’s two largest economies has escalated since July 2018. The impasse has slowed growth across board for the global economy. However, the market is pinning hope on the scheduled resumption of negotiations after President Trump and President Xi Jinping agreed on a ceasefire during the previous G20 summit in Osaka. US trade representative Robert Lighthizer and US Treasury secretary Steven Mnuchin travel to Shanghai next week to meet Chinese counterparts, Vice-Premier Liu He and Commerce Minister Zhong Shan.

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