GBP/USD is consistently staying near 1.1300, and Sunak will take office as prime minister on Tuesday.

Oct 24, 2022
VOT Research Desk

Market Insights, Considerations & Analytics

• GBP/USD holds constant, while the sterling declines relative to competitors.
• Rishi Sunak will take office as prime minister in the UK.
• In October, US S&P Global declines higher than anticipated.

Since the start of the American session, the GBP/USD has been stuck around 1.1300, unable to gain from a little weaker US dollar. While Sunak’s appointment as the new prime minister of the UK was announced, US economic data fell short of forecasts.

After the weekly opening, cable reached a top at 1.1410 before falling to as low as 1.1271. Its movement over the previous sessions ranged between 1.1340 and 1.1275.

Poor data in the US and a new PM in the UK

After Penny Mordaunt withdrew from the Tory campaign on Monday, Rishi Sunak will take over as Prime Minister of the United Kingdom. Tuesday might be the day that Sunak replaces Liz Truss. The administration declared that Sunak will be in charge of deciding whether or not to make an economic plan public on October 31. There won’t be a snap election, Sunak stated in a speech to Tory lawmakers.

Markets were not surprised by Sunak’s nomination because they had fully factored in his candidacy after Boris Johnson withdrew on Sunday. The pound has been declining after rising sharply at the start of the week. The euro/pound is once again trading above Friday’s closing price of 0.8735.

The US S&P Global PMI preliminary October report contributed to a decline in the US dollar during the American session. The Manufacturing Index decreased more than was anticipated, falling below the 50 threshold and to its lowest point in 28 months. Despite the economic news, US yields are still higher overall for the day. The 10-year yield is 4.25%, while the two years yield is 4.51%.

GBP/USD technical levels