GBPUSD Pound Sterling vs United States Dollar

The pound weakened against its major counterparts in the European session on Wednesday, as Labour leader Jeremy Corbyn outperformed expectations in the first televised debate with Boris Johnson last night.

The two leaders clashed on Brexit, the NHS, trust and leadership and the future of Scotland.

A YouGov poll after the debate showed that Johnson won the debate by a narrower margin of 51 percent to 49 percent.

The public were evenly split over the winner of the debate, leading to an inconclusive outcome.

This is a notable shift from previous opinion polls, which gave Johnson a solid lead over rival Corbyn in the general election.

Uncertainty about a potential U.S.-China trade deal weighed, as U.S. President Donald Trump on Tuesday threatened higher tariffs on Chinese goods if a trade deal is not reached between the two countries.

The ongoing protests in Hong Kong also dampened sentiment.

The currency has been falling against its major counterparts in the previous session.

The pound fell to a 5-day low of 1.2887 against the dollar, from a high of 1.2931 hit at 6:30 pm ET. The pound is seen finding support around the 1.27 level.

Having climbed to 140.34 against the yen at 7:00 pm ET, the pound reversed direction, falling to a 5-day low of 139.68. The pound is poised to challenge support around the 136.5 mark.

Data from the Ministry of Finance showed that Japan posted a merchandise trade surplus of 17.3 billion yen in October.

That was well shy of expectations for a surplus of 301.0 billion yen following the 124.8 billion yen deficit in September.

After rising to 1.2809 against the franc at 5:15 pm ET, the pound dropped to a 5-day low of 1.2766. The next possible support for the pound is seen around the 1.26 level.

In contrast, the pound was trading at 0.8566 against the euro, bouncing off from a weekly low of 0.8583 it recorded at 8:30 pm ET. Next immediate resistance for the pound is likely seen around the 0.84 level.

Data from Destatis showed that Germany producer prices declined for the second straight month in October largely driven by energy prices.

Producer prices fell by 0.6 percent year-on-year in October, bigger than the 0.1 percent drop in September. This was the second straight decrease. Economists had forecast an annual 0.4 percent fall.

Looking ahead, Canada CPI for October and the Fed minutes from the October meeting are set for release in the New York session.

Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Mar 2024 to Apr 2024

Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Apr 2023 to Apr 2024