Cable rises to a session high of 1.2898
Nigel Farage just gave Johnson a helping hand in the election as he stands down candidates for his Brexit Party to potentially avoid a hung parliament.
While he continues to criticise Johnson’s deal in general, he says that he welcomes the overall plan to not extend the transition period and argues that “this is more like the Brexit we voted for” – in a bit of a boost to the Tories’ election prospects.
Cable has raced higher from 1.2830 to just under 1.2900 and is settling around 1.2870-80 levels currently.
It’s not a formal pact between the two but in essence what Farage is getting at here is that he doesn’t need clear changes to the withdrawal agreement but only certain promises surrounding the political declaration.
The U-turn from his election strategy announced two weeks ago will be a boost to the Tories come 12 December with a majority parliament now possibly achievable.
For cable, keep an eye on the 200-hour MA (blue line) @ 1.2880 now. If buyers can hold a break above that and the 1.2900 level, the momentum could stay more bullish in the coming weeks if the Tories continue to do well in the voting intention polls.