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UK Parliament Bumps GBP down, USD/CNY Lowers

The GBP/USD was 0.4% lower than USD to 1.1912 when the UK Parliament declined the Brexit plea. Despite the slump, strategists assured investors a no-deal Brexit is still avoidable. 

UK PM Boris Johnson met with MPs last week in another attempt to secure Britain’s withdrawal from the EU. Unfortunately for Johnson, the majority of the British Parliament stood their ground for a delay. 

The EUR/USD pair slipped 0.1% to 1.1160.

Meanwhile, the USD/CNY pair lost 0.2% to 7.0768. Predictions expect both currencies to avalanche if the trade war stretches further next year. 

Even with China’s promise to buy more American agricultural products, China took its time to buy more Brazilian soybeans. China’s gross domestic product grew 6% in the third quarter, its slowest rate in 30 years. 

The USD/BRL kept flat at 4.1119, but recent events signal a tilt towards Brazil’s benefit. Three US soybean exporters claimed China hadn’t purchased any of their products since last week’s talk. 

US Dollar Index Futures inched up 0.1% to 97.062.

UK Currency Spasms at Brexit Uncertainty

The UK Currency is shifting because of the Brexit withdrawal’s unpredictability. Strategists claim that last weekend’s emergency meeting left a “greater overhang of uncertainty than hoped.”

UK PM Johnson’s allies reportedly wanted to present the same deal later this evening. However, the House of Commons speaker insisted that the same motion can’t be brought up twice in a session.

The opposing party directed the prime minister to a law which demanded he requested a delay. While he did not send a letter himself, the Parliament issued a request for a three-month extension for him.

Diplomats said the European Union would play for time rather than rush to decide on Brexit delay requests. 

French President Emmanuel Macron insisted there was no need for another delay. Instead, he said it was time to consider their future relationship.



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