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GBP/USD rises toward 1.1700 on fresh optimism regarding the UK's leadership; US GDP is watched
GBP/USD aims to surpass the 1.1700 barrier amidst a bullish market sentiment. Innovative British leadership has instilled optimism in the pound. Despite the Fed's continued policy tightening, the US GDP is projected to increase by 2.4%.
During the Tokyo session, the GBP/USD pair is advancing toward the round-level resistance at 1.1700. The cable has reached a new six-week high at 1.1639 and is anticipating further gains on the back of optimistic market sentiment and unique US leadership.
A buoyant market sentiment has bolstered the risk-sensitive currencies. Wednesday's market euphoria imbued risk-perceived assets with new life, while the S&P500 experienced losses due to the underperformance of technology firms. Microsoft's (MSFT) lackluster expectations caused a sell-off on the NASDAQ, which also affected the 500-stock US index.
The appointment of Rishi Sunak as the United Kingdom's new prime minister has instilled a sense of hope in the pound's price. As a result, the pound's bulls are receiving considerable bids from market participants.
Kristalina Georgieva, managing director of the International Monetary Fund (IMF), told Reuters on Wednesday that she expects the new British prime minister to take the country toward a path of medium-term budgetary sustainability.
In addition, UK Chancellor Jeremy Hunt announced a delay in the medium-term fiscal plan's presentation, which is currently slated for November 17. He believes the budget plan will demonstrate a decline in debt over the medium term. And cited economic stability and trust restoration as their top goal.
In the future, the US Gross Domestic Product (GDP) figures will be the most influential factor. According to the forecasts, the US economy has increased at a growth rate of 2.4% in the third quarter of CY2022 versus the de-growth of 0.6% reported before.
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