Fundamental Analysis

Pound Surge on Election Prediction – US Retail Sales Ahead

Published on 2019-12-13 10:21 Share

The pound is the biggest mover but all that came in one quick move to the topside after the exit poll was released, hinting at a huge Conservative majority.

The election results pretty much reaffirmed that and if anything, only proved to pile on more misery for Labour as cable stayed bid around 1.3450-90 for the most after an attempt to move above the 1.3500 handle.

Meanwhile, risk assets continued to stay underpinned as US and China closes in on a trade deal with Trump reportedly signing off on delaying the 15 December tariffs while offering up concessions to try and get China to pledge firmer commitments in the deal.

The risk mood is buoyant as such with US futures up by 0.4% and Treasury yields climbing back above 1.90% as we get the session going.

Looking ahead, with the UK election risk out of the way, it's now over to whether the risk mood can survive any potential scares going into the weekend. If so, we should see a slightly more upbeat and calmer session in the European morning today.

Moving ahead, market participants now look forward to the US economic docket, highlighting the release of monthly retail sales data in order to grab some short-term trading opportunities on the last day of the week.

Oil prices advanced on Friday as U.S. President reportedly agreed to a partial deal with China to pause the trade war, while Gold remained on the back foot below $ 1470 after gold in GBP terms slumped 2.5%.

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