The UK Parliament vs Euros and Dollars
The British Parliament drew breaths as the UK pound pushed past the dollar and euro on reopened Brexit possibilities.
GBP/USD climbed 0.5% at $1.2667, as EUR/GBP fell 0.3% at 0.8715.
EU’s top negotiator, Michel Barnier, claimed the agreement is still possible, albeit difficult. Barner said any agreements must work for everyone, and good intentions should be in a legal text.
Any concessions to the EU could cause problems for PM Johnson as he seeks support for the Brexit Withdrawal. He seeks the approval of Eurosceptic hardliners and the Democratic Unionist Party for the deal.
The EU’s statement also boosted the euro against the dollar. EUR/USD rose 0.1% to $1.1037.
Rumors report an emergency summit on October 31, Johnson’s deadline for a Brexit approval from the Parliament.
US Currency Falls on Phase One Uncertainties
The dollar index fell 0.2% to 98.035. Speculations believe currency investors grew weary at Phase One’s lack of details.
The American market’s ascent slowed as soon as Phase One emerged. Economists raised concerns about their announcements like China’s proposed expenses for US agricultural produce.
Analysts said Phase One would likely entail a commitment not to devalue the yuan.
Deutsche Bank strategists claim businesses barely see a clear pathway ahead. The negotiating sides needed to deal with more significant issues behind the conflict first.
National Australia Bank strategist Alex Stanley said the Chinese want another meeting with Trump. The meeting suggested not all details were nailed down last Friday.
London-based Chinese economist Julian Evans-Pritchard was skeptical that the US and China were any closer to a lasting solution.
The People’s Bank of China shored up the yuan with the same rate between Monday and Friday. PBOC claims to keep the currency up as a gesture of goodwill.
Meanwhile, the yuan upped to 7.0670 per dollar, stronger than the previous 7.0725 fixings. The USD/CNH pair reached a five-day streak at 7.0683 per dollar.
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