- The pound remains supported after the restart of the Brexit negotiations.
- GBP / USD retraces but maintains the bullish bias.
The GBP / USD is retreating modestly on Thursday, cutting a small part of yesterday’s strong rally when the pound rallied on all fronts as Brexit talks resumed. The pullback is being moderate and the pair is trading around 1.3100, after reaching 1.3176 yesterday, the highest level in a month and a half.
The pound remains positive in the face of renewed expectations about the possibility of reaching an agreement between the European Union and the United Kingdom by mid-November. With the recent appreciation it has become the one with the best performance so far this week.
The decline in these hours due to a rebound in the dollar, has pushed GBP / USD down to 1.3083, which is 150 pips above Wednesday’s opening level.
The US Dollar Index is rising, cutting back some of the recent losses and is approaching 93.00. The DXY fell to 92.43 on Wednesday, the lowest level since early September.
Traders will closely follow the evolution of the London talks on Brexit and also the economic data from the US for the next few hours, before US policy wins the scene again. In minutes the weekly jobless claims report will be out, and later the existing home sales report and the Kansas Fed index.
Negotiations for new fiscal stimulus in the US continue to be a relevant factor for investors. There is still no agreement on the doorstep, but there is still an expectation that something will be reached. On the US night it will be the second and last debate between President Trump and the Democratic candidate Biden.
Credits: Forex Street
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