The Cable is trying to break 1.3530 during Friday’s Asia session. The pair turned to a two-day uptrend the previous day amidst strong US dollar strength and soft UK Services PMI but covid figures and hopes of the easy path on Brexit seem to favor buyers amid the market’s inaction ahead of the key US jobs data for December.
The UK reported about 180,000 daily covid-19 cases and 231 virus-linked deaths the previous day. The numbers have been easing since the early weekdays when above 200,000 figures were seen. While the government authorities applaud strong vaccinations and activity restrictions as reasons, a leading Indian-origin scientist from the University of Cambridge warned on Thursday that it is an “evolutionary mistake”.
In other news, the UK’s Head of Competition and Markets Authority (CMA), Andrea Coscelli, will step down raised hopes of softer Brexit negotiations ahead. “According to government insiders, ministers regarded Mr. Coscelli as an impediment to post-Brexit economic reforms and saw him as a hurdle to breaking with EU competition policy,” said The Telegraph.
Looking forwardfor today, theres a light calendar in Asia-Pacific, as well as the UK, will join the wary mood ahead of the key US data and may restrict immediate GBPUSD moves. Though, Brexit and covid updates may favor the bulls.
US Nonfarm Payroll (NFP) forecasts indicate the headline rise from 210K to 400K while the Unemployment Rate may have eased to 4.1% from 4.2% prior. The unemployment rate, however, is likely rising from 7.8% to 8%.
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