- GBP/USD remains stable but the pound falls against other rivals.
- UNITED KINGDOM: Rishi Sunak will become the Prime Minister of the United Kingdom.
- The US S&P Global falls more than expected in October.
The pair GBP/USD it is hovering around 1.1300 since the start of the American session, unable to benefit from a slightly weaker US dollar. US economic data disappointed expectations, while Sunak was confirmed as the UK’s next Prime Minister.
Cable peaked after the weekly open at 1.1410 and then pulled back to 1.1271. During the last hours it has moved between 1.1340 and 1.1275.
New Prime Minister in the UK, weak data in the US.
Rishi Sunak will become UK Prime Minister after Penny Mordaunt dropped out of the Tory race on Monday. Liz Truss’s transition to Sunak could take place on Tuesday. The Government has announced that it is Sunak who must decide if he announces a fiscal plan on October 31. In front of the Tory deputies, Sunak said that there will be no early elections.
Sunak’s confirmation came as no surprise to markets, as he was already trading after Boris Johnson pulled out of the race on Sunday. After a rally earlier in the week, the pound has pulled back. EUR/GBP has broken back above the level it closed at on Friday, above 0.8735.
The US dollar lost momentum during the American session, weakened by the US S&P Global PMI flash report for October. The manufacturing index fell more than expected to the lowest level in 28 months and below the 50 level. US yields remain higher on the day despite the economic report. The 10-year yield stands at 4.25% and the 2-year yield at 4.51%.
Technical levels
Source: Fx Street
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