USDGBP continues to rise into the weekend holding shy of 1.25. This could be due to the UK’s high court ruling on Brexit or the news filtering out from the US regarding it’s presidential election.
Employment data is due today from the US which could cause a short-term pop above 1.25 which is a level that has not been seen for over a month.
Presidential Elections and Court Rulings
The market uncertainty from Brexit continues but the US Presidential election is adding to it as the polls tighten heading into Tuesday. The probability of a ‘soft exit’ from the EU went down yesterday after the UK High Court ruled that PM May could not execute Article 50 on her own. An appeal will be heard in December by the UK Supreme court with a ruling to be expected in January.
Meanwhile in the US, Hillary Clinton remains ahead in most polls but Donald Trump is closing in key states. All partisanship aside, Trump’s path to the White House seems difficult while Clinton could be indicted by the time she gets inaugurated in January. The only thing that is certain is that nothing will be certain for some time.
Don’t jump on any major move in GBPUSD until Wednesday of next because you will likely get “whipsawed” by the volatility. Be patient and an opportunity will present itself.