Icon_contact
Contact

GBP Surges after morning Exit Poll, Trump Boosts Trade Deal hopes

jeffriess
December 13, 2019
by Joseph Jeffriess, Market Analyst

Article Recap

GBP surge reflects Exit poll - Trump moves closer to phase one in a trade deal. Stocks and major risk currencies have solid sessions to the USD.

Risk posts solid night after Exit poll and Trump trade deal hopes.

Traders jumped back into risk markets overnight and this morning after two key influences supported risk buying.

Exit polls showed the Conservative Party in the UK was headed to a majority win this sent the GBPUSD surging by 2.40%. Exit polls showed a majority win of 368 out of 650 to the Conservatives. So with a majority, it’s now up to Johnson to get his Brexit through and set up a smooth exit from the EU. The U.S commented they would see to smooth fast new trade deal with the UK.

Trade Deal Phase 1 –

  • The Trump administration has reached a trade deal in principle with China three sources close to the talks told CNBC.
  • The president met with advisors Thursday afternoon about whether to scrap the next round of tariffs on China.
  • The Trump administration has offered to eliminate tariffs on Chinese goods set to take effect Sunday and cut some existing duties in half, sources told CNBC.

No surprise this had a positive effect on stocks indexes, Dow +0.79% – Nasdaq +0.73% – FTSE +0.79% (combines with the election result).

Today Asian shares are mainly higher to very strong.

  • Nikkei +2.47%
  • ASX200 +0.60%
  • Shanghai Composite +1.21%
  • Hang Seng +1.75%

Risk majors are seeing small pullbacks after earlier highs, the AUDUSD 0.29% lower from it’s morning high.

Tonight, traders will be looking to U.S retail sales data due at 12:30 am

Good trading from Eightcap.
All times are AEDT.