Who Lied To The Queen? BJ did
25 September, 2019
This week we finally have the result that the Prorogue of Parliament was unlawful. This was heard earlier yesterday from the Scottish Supreme Court. A long battle which was expected to only be a few hours turned into days of debating but with the final say being MPs will be back in the office this morning.
Now that parliament is open for business, what does this mean for the FX markets? As seen from the announcement of the news there was little movement from the 2 major pairings. GBP/EUR moved up slightly only recovering the losses from the last 3 days putting us back to the 15-week highs we saw towards the end of last week. As well we see a slight recovery from GBP/USD only claiming back the dip we saw on Monday.
This could be because the markets were expecting this decision from the drawn-out process. If it was a swift decision it was heading to be in favour of suspending the government but as it took a longer approach, with interviews after each day giving confidence to the idea that it was in favour of bringing MPs back to work. Which they did.
Over the last few weeks, we had the party conferences, which as we all knew, was heavily Brexit related with a sprinkle of other issues thrown in.
The Lib Dems came to the conclusion that Brexit is against the will of the people and vowed to overturn the 2016 referendum in a total U-turn and said they will revoking article 50.
Boris is standing strong saying we are leaving Deal or No Deal come October 31st.
Labour a bit on the ropes voted to agree to disagree with their stance leaving labour supporters, on both leave and remain, not knowing where their party will take their vote.
Labour seems to have a lot more of the light shined at them now with some of the Anti – PM MPs calling for Boris to be removed, most notably Ian Blackford the SNP leader. This means this is Labours time to call a vote of no confidence and aim for a general election while the Tories are in turmoil.
What we have now is back to square one, lots of uncertainty with every corner marching to the beat of their own drum. All pulling the rope in each direction but leaving the UK standing still.
Many of the world leads have spoken yesterday with a guest appearance from Greta Thunberg who have a tearful speech where she shamed the world leaders for not doing enough to reverse the effects of climate change. Specifically, she called out 5 countries she thought wasn’t pulling their weight in helping control this global issue. Argentina, Brazil, France Germany and Turkey are the ones she shamed in not taking enough action.
Later on in the day we will see key stats coming from the states showing their crude oil inventories. Many eyes watching this as in recent events we have seen oil plants targeted with explosives, bombs and missiles which resulted in a hit of 7% of the world’s oil supply.
Thursday the Final GDP q/q is released expected to stay flat at 2%.
Thursday afternoon we have a speech by ECB President Mario Draghi, followed by BOE Head Carney.
Friday there is a bit more data coming out of the USA with Core Durable goods orders m/m and personal spending m/m.
An eventful week only putting more options now on the table likely to unbalance any certainty we had, even if that certainty was bad.
So, to protect your funds as much as possible keep in touch with your Account Manager to be kept in the loop of the news ahead and potentially lock in your rates ahead of time protecting your self from any further drops.
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