U.K. stocks moved modestly higher on Monday, while the pound pulls back as Prime Minister Boris Johnson fights to get his Brexit deal passed ahead of an Oct. 31 deadline.
European stocks traded modestly higher on Monday, with banks in the lead as investors braced for another week of Brexit headlines, while SAP AG gained on results.
U.K. House of Commons Speaker John Bercow said Monday afternoon that Prime Minister Boris Johnson cannot hold a new Brexit vote, saying it "would be repetitive and disorderly," according to media reports. A Parliamentary vote on the deal failed to get off the ground on Saturday, which forced the Prime Minister to send a letter to the EU asking for a three-month Brexit delay. Johnson, who is opposed to any delay, was going to attempt to win parliamentary approval for his plan on Monday as the Oct. 31 Brexit deadline draws nearer. The government will now be left to get the legislation required for Britain's departure from the European Union through parliament. The pound eased off slightly after that news, while the FTSE 100 was unchanged.
Investing.com -- Gold prices traded sideways again on Monday, dipping fractionally below $1,500 an ounce but not meaningfully lower, as a definitive resolution of the Brexit stayed stubbornly out of reach of U.K. politicians.
Investing.com - Sterling was under pressure on Monday after Speaker of the House of Commons John Bercow said there would be no vote on the latest Brexit deal as Prime Minister Boris Johnson had hoped.
Sterling is rallying in the early day as investors see the odds of a no-deal Brexit lessening and are optimistic a deal will be ratified soon.
Investing.com – Wall Street opened higher on Monday, as upbeat rhetoric around trade continued to support sentiment in the absence of much hard news.
EUR/USD pushed higher in early trading, in an attempt to post a fifth consecutive day of gains. The next area of upside interest falls near 1.12.
The concurrent rallies in the AUD/USD and NZD/USD do not signify a major shift in investor sentiment. What they probably represent is position-adjustments to the drop in the chances of an RBA rate cut in November, and the jump to 93.5% in the probability of a Fed rate cut at the end of October.
Another round of global monetary easing has just begun! More than 30 central banks around the world have cut interest rates this year so far. The Fed and the ECB are certainly among them. Should gold investors look forward to these policies playing out? Let’s find out how gold tends to behave during such an extraordinary period!
The USD/JPY is currently being supported by higher Treasury yields and increased demand for risky assets because investors aren’t too concerned about the Brexit outcome. If the tone over Brexit remains positive then look for the Forex pair to extend its gains.
Investing.com - U.S. futures pointed to a slightly higher opening bell on Monday, as chatter continued over the U.S. and China making a temporary trade deal.
‘Super Saturday’ in the UK House of Commons failed to live up to the billing as the crucial ‘meaningful vote’ on Prime Minister Johnson’s Brexit deal was scuttled by an amendment which delays, rather than defeats, the proposed agreement.
Based on the early price action and the current price at 108.518, the direction of the USD/JPY the rest of the session on Monday is likely to be determined by trader reaction to Friday’s close at 108.408.
Based on the early price action and the current price at .6402, the direction of the NZD/USD the rest of the session on Monday is likely to be determined by trader reaction to Friday’s close at .6386.
Based on the early price action, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to Friday’s close at .6856.
Investing.com -- The British pound edged down in early trading in Europe on Monday after an anti-climactic weekend in London that saw the moment of truth fo Prime Minister Boris Johnson’s Brexit deal with the EU ‘s pushed back once again.
It’s too early to tell if the reaction we are seeing early Monday will hold true throughout the week, or if this is just the calm before the storm. It’s no surprise that the British Pound and Euro are trading lower since they will be the currencies most affected by the Brexit news. The mild price action suggests light position-squaring is taking place. The moves in the Yen, Franc, gold and Treasurys suggests investors aren’t too concerned about the weekend events at this time.
Investing.com - The British pound fell against the U.S. dollar on Monday in Asia after U.K. Prime Minister Boris Johnson failed to win parliamentary backing for his divorce deal.
Rate cut hopes and a weak U.S. Dollar are likely to underpin prices. Gold could be pressured, however, if the U.S. and China continue to make progress to completing phase one of the partial trade deal. There’s still too much uncertainty surrounding Brexit to call the news bearish for gold.
There are no major economic releases this week so the direction of the AUD/USD and NZD/USD is likely to be determined by trader reaction to any news about U.S.-China trade relations and Brexit negotiations.
The progress in the U.S.-China trade talks may be a positive that underpins the USD/JPY. Meanwhile, the Brexit talks create more uncertainty that could weigh on demand for risky assets.
On Thursday, UK and EU leaders declared a tentative deal on Brexit. The news sent the Pound higher, and the US Dollar distinctly lower.