Forex news for NY trading on September 2, 2019
- What level is key for the GBPUSD into the newest Brexit vote tomorrow?
- It's official....Expect call for general election if government loses vote on Tuesday
- UK ministers agreed: There will be a vote on general election if defeated tomorrow
- LIVE: PM Johnson outside 10 Downing Street. "Lets get on without an election".
- Offshore yuan falls to new record low
- China, US struggle to set September meeting for trade talks
- The UK FTSE moved higher as traders focus on the lower GBP
- The EURUSD sits on the edge of a cliff
- More Brexit: PM Johnson is planning a snap general election ...
- Kuenssberg of BBC: A "rebels bill" would force PM to seek 3 mo. extension of Brexit
- Italy's treasury sees 2020 deficit at 1.6% vs 1.9% in 2019
- China lodges formal complaint at WTO over US tariffs
- ForexLive European morning FX news wrap: Pound falls ahead of Brexit showdown in parliament
In other markets, a snapshot is showing:
- Spot gold is up $9.00 or 0.59% at $1529.05
- WTI crude oil futures are down $0.33 or -0.60% for $54.77
- E-mini S&P futures traded down -26 points at 2898.75
The US and Canada markets were closed today in celebration of each countries respective observance of Labor Day. The US stock and bond markets were closed as were banks and financial institutions.
Nevertheless, Europe was open and UK politics/Brexit took center stage (once again).
Labour Party's Jeremy Corbin, in response to PM Johnsons prorogue announcement last week, volleyed back with a bill proposal that would force PM Johnson to request Brexit delay to January 31, 2020
Specifically, UK labor lawmake's said:
- The purpose of the bill is to ensure that the UK does not leave the European Union on 31 October without an agreement, unless Parliament's consent
- The bill gives the government time either to reach a new agreement with the European Union at the European Council meeting next month or to seek parliaments specific consent to leave the EU without a deal
- If neither of these 2 conditions have been met by 19 October, then the prime minister must send a letter to the president of the European Council
- Lawmakers will on Tuesday put forward motion to take control of Parliament business on Wednesday to launch bill to prevent no-deal Brexit - Source
- No-deal Brexit opponents plan to begin passing bill on September 4
PM Johnson volleyed back saying that
- Will present motion to Parliament calling for an election if government loses votes on Tuesday
- Expect vote on holding an election to be held on Wednesday
- If passed, the likely election date would be October 14
- Vote on having an election would require two thirds majority to pass
So there is uncertainty now on Brexit date, deal or no-deal and what government/leader will be in charge.
That - along with some weak PMI data out of the UK today - has the GBPUSD moving lower (and the weakest of the majors). The JPY is ending as the weakest of the major currencies. The GBPJPY was the biggest % mover of the day at -0.85% on the day.
I took the opportunity today to do a couple of technical videos.
The EURUSD could not fall below the edge of the cliff today, but the intraday correction could only get to the 50%. Sellers are still more in control
For the GBPUSD, the pair cracked back below an old trend line today, shifting more of the bias lower.
If you like the videos, be sure to click thumbs up, and feel free to add comments as well.