GBP/USD advances towards 1.1700 on novel UK leadership-infused optimism, US GDP eyed

• GBP/USD is aiming to reach the 1.1700 hurdle amid a positive market mood.
• Novel UK leadership has infused optimism in the pound’s spirit.
• The US GDP is seen higher by 2.4% despite the continuation of policy tightening by the Fed.

The GBP/USD pair is marching toward the round-level resistance of 1.1700 in the Tokyo session. The cable has recorded a fresh six-week high at 1.1639 and is eyeing more upside led by upbeat market sentiment and optimism infused by novel US leadership.

A cheerful market mood has strengthened the risk-sensitive currencies. On Wednesday, the overall optimism in the market infused fresh blood into the risk-perceived assets, however, S&P500 witnessed losses led by underperformance in tech stocks. Subdued projections presented by tech-giant Microsoft (MSFT) triggered a sell-off in NASDAQ, which also impacted the 500-US stock basket.

Pound bulls are enjoying significant bids from the market participants as novel UK leadership after the appointment of Rishi Sunak as UK Prime Minister has brought a sense of optimism in the sterling’s spirit.

On Wednesday, International Monetary Fund (IMF) Managing Director Kristalina Georgieva told Reuters, she expects new UK PM Sunak to steer Britain towards a path of medium-term fiscal sustainability.

Apart from that, UK Chancellor Jeremy Hunt announced a delay in the presentation of the medium-term fiscal plan, which is scheduled now for November 17. He believes that the fiscal plan will display that debt is falling over the medium term. And, cited economic stability and restoring confidence as their foremost priority.

Going forward, the US Gross Domestic Product (GDP) data will be the major trigger. According to the projections, the US economy has expanded at a growth rate of 2.4% in the third quarter of CY2022 against the de-growth of 0.6% recorded earlier.