British pound has staged a small bounce higher after support at the 100DMA kicked in last Friday, GBPUSD is currently trading at the price of 1.2759. GBP found some support after the results of last Thursday’s UK parliamentary elections revealed that none of the parties actually had the power to govern – and election results had delivered a hung parliament.
The British pound suffered a decline of 1.6% from Thursday’s open to Friday’s close, but managed to control the bleeding so far on Monday as Theresa May looks to strike a deal with a smaller party to enable her to stay in power. May will also be trying to rally support for Brexit talks that are set to start on Monday.
Overall sentiment looked predominantly poor during the asian session, with the major indices heading lower in what seems to be a cautious move ahead of developments in the UK but also as we head into some high impact data, and have communications from three major central banks later this week.
Looks like another intesntive week as ahead of us we have UK CPI and German Zew on Tuesday; US CPI, Advance Retail Sales and FOMC rate decision on Wednesday; BoE rate decision on Thursday; and on Friday BoJ Kuroda speaks after MPM and we have Michigan Confidence from the US.
