The UK manufacturing PMI rose unexpectedly strongly to 53.1 in November, up from 51.1 in the previous month but had no market impact.
GBP/CHF Exchange Rate Treads Water amid Concerns over Downing Street's Brexit Legal Advice Release The Pound Swiss franc (GBP/CHF) exchange rate is treading water today, and is now trading at CHf1.2730, as Prime Minister Theresa May came under pressure over the release of the legal advice received during the drafting of her Brexit withdrawal agreement.
British Prime Minister Theresa May said she would still be in her job in two weeks' time, downplaying speculation that she might resign if she loses the Brexit deal is not approved by parliament in a vote scheduled for December 11.
After a highly anticipated dinner between US President Donald Trump and his Chinese counterpart XI Jinping on the side lines of the G20 summit, the White House announced that the two leaders had agreed to a 90-day ceasefire of their trade dispute.
Stephen Gallo, European head of FX strategy at BMO Capital Markets, said the heightened chances of political uncertainty on the back of increased resistance from British politicians should pressure the pound lower in the coming days. The trade war agreement supported the Risk-on sentiment with global stock rallying and the US Dollar broadly retreating lower. All eyes are now on the United Kingdom parliament voting on Brexit deal on December 11 with the parliamentary debate starting on December 5.
The pound is showing only modest gains against the USA dollar this morning as investors react to the UK's latest manufacturing PMI. However while the headline PMI appeared positive, analysts warned it masked some of the underlying weakness in the sector as new export orders continued to contract, leading to forecasts the UK's factory sector may end up dragging on growth in the fourth quarter.
Technically the GBP/USD is moving in a downward sloping trend on the hourly chart. The Slow Stochastics fell from the overbought territory after making a bearish crossover earlier. The GBP/USD is expected to stay near 1.2735 level with price movement tilted to the downside re-testing the round big figure of 1.2700 before targeting 2018 low of 1.2662.