GBP/USD rises towards 1.1700 on new optimism infused by UK leaders, US GDP looks on

  • GBP/USD is aiming to hit the 1.1700 mark amid positive market sentiment.
  • The new British leadership has instilled optimism in the spirit of the pound.
  • US GDP is seen up 2.4% despite continued Fed policy tightening.

GBP/USD is heading towards the round resistance of 1.1700 during the Tokyo session. The cable recorded a fresh six-week high at 1.1639 and eyes further upside thanks to Market sentiment and the optimism infused by the new American leadership.

Good market sentiment bolstered risk-sensitive currencies. On Wednesday, general market optimism breathed new blood into perceived risk assets, however, the S&P500 posted losses driven by underperformance in technology actions. Moderate projections presented by tech giant Microsoft (MSFT) triggered a sell-off on NASDAQ, which also impacted the US-500 stock basket.

Pound bulls are enjoying strong offers from market participants as new British leadership following Rishi Sunak’s appointment as UK Prime Minister has brought a sense of optimism to the minds of the pound .

On Wednesday, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, told Reuters she expects new British Prime Minister Sunak to lead Britain on the path to medium-term fiscal sustainability. .

Apart from that, British Chancellor Jeremy Hunt announced a postponement of the presentation of the medium-term budget plan, which is now scheduled for November 17. He believes that the budget plan will show a decline in debt over the medium term. And cited economic stability and restoring confidence as their top priority.

In the future, the United States Gross domestic product (GDP) will be the main trigger. According to projections, the U.S. economy expanded at a growth rate of 2.4% in the third quarter of calendar year 2022 against the previously recorded decline of 0.6%.

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