- GBP / USD resumes its bids towards the monthly high and prints a sequence of seven consecutive days.
- UK Times marks Whitehall source to quote the Brexit deal, The Guardian quotes Chancellor Sunak to mark Britain’s difficult position.
- Pfizer to get UK approval soon, Regeneron’s antibody treatment gets FDA green light.
- UK / US PMIs, Brexit headlines and virus / vaccine updates are key.
GBP / USD refreshes its intraday high to 1.3298 during Monday’s initial Asian session. The pair recently won offers as the market grows bullish on the Brexit deal and the coronavirus (COVID-19) vaccine. However, challenges to the Fed’s emergency programs and growing numbers of viruses in the northern hemisphere challenge the bulls.
A Brexit deal not at any price …
The UK Times quotes an anonymous UK government source to suggest that expectations of a deal are growing. The Sky is following suit, citing the European Union (EU) side while indicating a 95% chance of a Brexit deal. However, the article also mentions increased uncertainty over key issues such as fisheries, governance and competition rules which highlight the anxiety.
On the other hand, The Guardian quotes UK Finance Minister Rishi Sunak to probe the bulls while underlining the UK government’s willingness to pull out of the deal if it is not in their favor. The diplomat said, according to the reports: “We shouldn’t make a deal at any cost, it would be the wrong thing to do and I think there are things that are important to us in these negotiations, and we have been whole, as I said, reasonable, consistent and transparent. “
Fears that the US Federal Reserve (Fed) will soon have to hand over $ 500 billion in emergency program funds to Treasury Secretary Steve Mnuchin are also negative.
Elsewhere, anti-virus treatments fight the mood of risk. The Telegraph broke the news suggesting that Pfizer will soon obtain UK government approval for its COVID-19 vaccine, while Regeneron’s antibody treatment is secured by the US Food and Drug Administration (FDA). It’s also worth noting that discussions around a gradual easing of covid-induced activity restrictions also favor late GBP / USD bulls.
Against this backdrop, the S&P 500 Futures marks an intraday loss of 0.10% in press time.
Meanwhile, GBP / USD traders will pay close attention to early readings of November PMI data for further momentum. However, this does not diminish the importance of updates on viruses, vaccines and Brexit.
A clear break above the monthly high near 1.3315 becomes necessary for the bulls before defying the annual high of 1.3482. Meanwhile, a 10-day SMA close to 1.3240 offers immediate support to watch during price pullbacks.