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As the reveal of the economic data of UK and interest rate decision， It seems like the Sterling Pound can enjoy the Christmas holiday as the Parliament members did. The price high dealt at 1.269. After the release of the economic data, the pair rechallenged it and rebounded back to the renewed price 1.265. Every factor related to Pound is nothing but the Brexit. A further deal will be reached in January. From the view of American rival, the shutdown of the USA government is simmering. The impact on the greenback will be magnificently high under such recessed condition in the stock market.
The decision on Bank of England is easy to forecast as the impasse in Brexit has significantly escalated the economic sufferings in England. Stock gains on FTSE 100 have all its gain since 2000. The lower low refreshed had crashed to 6652 and technically rebounded. It is a wise and expected move for BoE to keep the rate unchanged. We are unlikely to see the further progress from BoE in the first quarter of 2019. However, BoE warned that Brexit uncertainty had ‘ intensified considerably’, but the falling of oil price support the economy from below.
And the retail data surprised the market. Pure retail sales rose to 1.2% which is 100 points higher than the estimation. With the fuel count in, the Retail sales number amounted to 1.4% which is 1.1% higher than the expected. Later this afternoon, the revised GDP for Q3 will be out.&nbsp;
On the side of Greenback, Personal consumption data will be out later in this Friday. The performance of the labour market is not bad. The initial jobless claim is 2k less than expected. The problem merged is the shutdown emergency. The House increased the chances of a partial U.S government shutdown by voting to give President Donald Trump funds for his proposed border wall in a spending bill the Senate is sure to reject hours before a midnight Friday deadline. The economic effects of a shut down over the Christmas and New Year holidays may be significant. The last shutdown caused 24 billion loss to the USA.
Technically speaking, the pair is recovering from the year low at 1.251. &nbsp;After the rally at 23.6% retracement level. GBP may take more profit over the weakened USD. Short-term SMA is piercing 60 SMA which will fuel up the pair to go into a bullish stance. As the ascendant trend line constructed, the short-to-medium term trend may be positive. Technical readings are directionless. Only bull power suggests the buyer is still on board. An extended bullish is expected.

Data helped GBP to get better result against USD

Dec 01 2020