Pound Rallies on Britain Election News

Britain saw its currency rise against the greenback as hopes of a smooth Brexit flared up on Monday. Meanwhile, the dollar still gained against other currencies.

The British pound gained 0.2% to $1.2854 during the Asian trade. This move lifted the UK currency from the two-week slump it reached on Friday.

The US dollar gained some support from the positive economic data last week. It gained 0.1% against the Japanese yen, trading at 108.78 yen per dollar.

Meanwhile, the euro was firm at $1.1021. Both the Australian and New Zealand dollars moved higher.

The US dollar index, which pits the dollar against a basket of other peers, traded firmly at 98.258.

According to analysts, the market is holding on to any optimism at present “to keep the momentum going.”

On the flipside, traders are also cautious and skeptic. Markets have proven that it is driving on a tricky road right now.

FX Market: Boris Johnson, Trade Talks, and Hong Kong

The forex market has its hands full at the start of the week.

Over in Britain, Prime Minister Boris Johnson promised to “get Brexit done.” He pledged to bring a Withdrawal deal back to the Parliament before Christmas.

Johnson’s Conservative Party leads in opinion polls before the December 12 elections.

Meanwhile, the Chinese announced plans for intellectual property protection rights. Intellectual property has been one of the sticking points of the tit-for-tat US-China trade war.

Last Friday, Chinese President Xi Jinping said that he wanted to reach a deal with the US. On the other side, US President Donald Trump said there had been progress in the negotiation.

However, increasing tensions over Hong Kong are becoming a complication in the trade talks.

The semi-autonomous former British colony has been suffering anti-government protests for more than five months now.

Moreover, Beijing also has vehemently disagreed with the US legislation that supported the protesters. The bills have passed Congress, but Trump has not signed them yet.