GBP/USD on a back foot as traders await fresh clues from Carney’s speech
With the latest political developments at the UK likely favoring a hard Brexit, investors await fresh clues from the BOE’s Carney for fresh impulse while the GBP/USD pair weakens to 1.2675 ahead of the UK open on Friday.
Boris Johnson leading the race of the UK PM with highest votes during the first round of Tory poll on Thursday and the British Parliament’s rejection to the Labour-led motion to block no-deal Brexit adds further strength to speculations concerning a hard Brexit.
On the other hand, sluggish data from the US and trade tussle with China highlights the risk of the Fed rate cut, which in turn weighs on market sentiment amid chances of a US-Iran war and drags the 10-year US yields further to the south at 2.084 by the press time.
US retail sales for May and the Michigan consumer sentiment index for June will also be crucial. The headline retail sales growth could rally to +0.6% from -0.2% on MoM basis whereas retail sales control group might advance +0.4% versus 0.0% earlier. Further, the US consumer sentiment gauge is likely to be a tad lower to 98 from 100.
Trading Central – GBPUSD: sentiment is a sell to 1.2560 if Below 1.2860.
Trading Central – GBPJPY: sentiment is a sell to 136.16 if Below 137.76.
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