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Investors Evaluate the Results of the Election of the British Prime Minister

9/6/2022 3:19 PM

Against the background of the stabilization of the US currency, the GBP/USD pair is correcting around 1.1587.

The key event, which continues to influence all segments of the UK market, remains the results of the elections for the post of head of the Conservative Party and the government of the country, which were won by Liz Truss, who until now held the position of Minister of Foreign Affairs. She overtook her main opponent, former finance minister Rishi Sunak, with 81,326K votes. Officially, Liz Truss will take office today after an audience with Queen Elizabeth II of The United Kingdom. It is worth noting that the official will have a rather busy start to work, as the national economy is in dire need of support, and the population is counting on additional subsidies to pay for skyrocketing electricity and heating bills. Incumbent officials resigned ahead of forming a new cabinet: Home Secretary Priti Patel, Government Secretariat official Nigel Adams, Home Office deputy head for security Stephen McPartland and Culture Minister Nadine Dorries. It is still difficult to assess what innovations in domestic policy will be adopted, but experts are confident that Liz Truss will continue the course of the previous Prime Minister Boris Johnson, and serious changes should not be expected.

The US dollar is at the highs of the year, around 109.500 in the USD Index, in anticipation of the next meeting of the US Federal Reserve on September 21: most experts expect an increase in interest rates by 50.0 basis points. The local dynamics of the currency may be affected by today's data on the index of supply managers for the non-manufacturing sector, which, according to analysts' forecasts, may drop to 55.1 points from 56.7 points in August, interrupting the growth trend that began last month.

The trading instrument is moving within the global downward channel, falling towards the support line.

Technical indicators maintain a stable sell signal: indicator Alligator's EMA oscillation range expands downwards, and the histogram of the AO oscillator forms downward bars in the sell zone.

Resistance levels: 1.1762, 1.2200. | Support levels: 1.1446, 1.1130.

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