GBP/USD struggles to remain strong as British media criticizes UK PM Johnson
- GBP/USD stays a little changed around one week high.
- The quote rallied Thursday after YouGov’s MRP indicator signaled Tory lead.
- UK PM Boris Johnson’s ignorance of some media appearances got criticized off-late.
GBP/USD stays modestly changed around 1.2910 ahead of the London open on Friday. The pair benefited from the polls showing sustained fame of the ruling Conservative Party. The reasons for the lack of further strength could be attributed to the United Kingdom (UK) PM Johnson’s step back from certain debates, TV shows that sparked anger.
Following the YouGov’s poll of a clear lead of the ruling Tory Party over the opposition Labour Party, allegations over the UK PM rose after he turned down debate on Channel 4 and is yet to confirm an interview with BBC’s Andrew Neil, as per the Independent. While opposition leaders have started using harsh words, media seems to support the backlash, which in turn could result in a loss of popularity ahead of the December election.
Additionally, the Conservative’s boss was recently criticized by the opposition Labour Party leader Jeremy Corbyn of selling the National Healthcare Systems (NHS) to the United States, citing leaked government papers.
Other than receding odds of another strong poll favoring the Tory leadership, the US dollar’s (USD) recovery on the back of fewer harms from the Hong Kong Act could also be cited as a catalyst.
With this, the market’s risk tone stays mostly directionless with the US 10-year Treasury yields taking rounds to 1.77% with Asian equities flashing mixed signals.
Moving on, a half-day trading session in the US and a lack of data/events could keep markets less volatile. Though, trade/political headlines will remain as important drivers.
Technical Analysis
One-week-old falling trend line near 1.2950 and a monthly resistance-line close to 1.2980 hold the pair’s near-term upside limited. Alternatively, sellers look for entry below the three-week-old rising trend line around 1.2840.