On Wednesday, 13th of July the British pound trades on positive area. Currently, the GBP/USD pair trades near the level of 1.3270 by adding 0.2%.
As Bloomberg reports, “The pound climbed the most since three days before Britain’s European Union referendum as Home Secretary Theresa May prepared to take over as the U.K.’s next prime minister, removing one layer of political uncertainty.
Sterling rose to its highest level in a week versus the dollar as investors digested the implications of the new premiership on the U.K.’s negotiations with the EU over its withdrawal from the bloc. May is poised to take office by Wednesday night London time, replacing David Cameron after her only rival pulled out of the Conservative leadership contest Monday.
The pound’s recovery this week has barely dented its drop since the June 23 referendum. Sterling reached $1.50 in the aftermath of the vote, amid speculation the “Remain” camp would triumph, before falling the most on record as it became clear “Leave” would win.”
Tomorrow at 11:00 GMT, the Bank of England will announce interest rate decision. Some market participants expect that Bank of England policy makers will cut interest rates in an effort to spur growth amid signs the decision to leave the world’s biggest trading bloc shook confidence in the economy.
The resistance levels for the Pound are 1.3280 and 1.3341
The support levels for the GBP/USD are following 1.3225 and 1.3030
Yesterday, 12th of July the American index S&P500 set record intraday highs as optimism about the world economy and upbeat corporate results from Alcoa boosted risk appetite.
The benchmark S&P 500 hit 2,155.32, topping Monday's intraday record high by more than 12 points.
This morning, the S&P500 index consolidates near its maximum levels.
As Reuters notes, “Increasing prospects of global economic health boosted shares, while Alcoa reported a smaller-than-expected drop in quarterly profit, sending the aluminum producer's shares up more than 5 percent and helping boost optimism about the earnings season.
Investors' appetite for equities has increased after robust economic data, including a stronger-than-expected U.S. jobs report for June last Friday, and low yields on government bonds. Easing political uncertainty in Britain and Japan have reduced some global uncertainties.”
The resistance levels for the S&P500 are 2155 and 2180
The support levels for the S&P500 index are following 2138 and 2120