Sterling tumbled yesterday as Parliament reconvened. Boris Johnson remained defiant in the face of calls for his resignation. The under pressure Prime Minister was confronted by strong condemnation in what was a heated and aggressive session of debate.
The situation now returns to what it was in early September; MP’s able to legislate against any of Johnson’s new plans to fulfil his policy of leaving the European Union by the 31st October. No doubt they’ll be some more Parliamentary twists and turns before the week’s finished.
The pound fell yesterday as the potential for a general election increases each day that passes. The GBPUSD pair broke through a key short-term level between $1.2390 – $1.24. The GBPEUR pair fell back through €1.13 but soaked up some of the sterling weakness via a softer euro. The outlook for the pound remains mixed. On the one hand the potential for a no-deal exit from the EU on 31st October is now remote but the prospect for the general election shortly after is on the rise. While uncertainty is still present many will maintain a bias to the downside.
Today sees US Q2 GDP revisions as well as pending home sales and the Fed-preferred measure of inflation. In addition we’ll see speeches from Mario Draghi and Mark Carney.
Written by Viv Savani. 8:33am, September 26th 2019
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.