- GBP/USD gradually declines from Friday’s high.
- The UK Parliament’s special session failed to clear the Brexit fog as Letwin Amendment took over the meaningful vote.
- Withdrawal Agreement (WA) Bill will be discussed during the week.
GBP/USD witnesses a negative week start as the Brexit uncertainty weighs over the Cable. The pair declines to 1.2920 by the press time of early Asian morning on Monday.
With the United Kingdom’s (UK) Parliament preferring Letwin Amendment over the discussion and voting on WA bill, all efforts done by the Prime Minister (PM) Boris Johnson to get the deal went in vain. As a result, the Tory leader had to write the EU for another Brexit extension from October 31 deadline.
However, tweets from The Times’ editor suggest the European Union (EU) is less in the mood to give another longer extension except for a three month period.
Elsewhere, the Telegraph’s political correspondent Harry Yorke mentions that the Democratic Unionist Party (DUP), together with few Labour, independent and Tory backbenchers, is up for questioning the bill in the Parliament over the customs union.
Furthermore, the French government seems to hate the UK’s Brexit extension as the UK Telegraph mentions, “The French government has demanded a prompt "yes or no" from Britain over Boris Johnson's Brexit deal as European capitals appeared split on Sunday night over an extension and its duration. Amelie de Montchalin, Emmanuel Macron's European affairs minister, on Sunday urged MPs to deliver a verdict so that European leaders can gather to discuss whether to grant a delay.”
On the contrary, odds favoring the US-China trade deal increased over the weekend as the South China Morning Post (SCMP) quotes Chinese Vice-Premier Liu He saying “concrete progress” in many areas during their latest round of talks to resolve the trade war, but negotiations must be on an equal basis.
Investors will keep an eye over the trade/Brexit headlines to determine near-term pair moves as the economic calendar is light.
Technical Analysis
April low nearing 1.2865, followed by June top close to 1.2785, seem nearby key supports for the pair, a break of which can recall a 200-day Simple Moving Average (SMA) level of 1.2715. On the upside, 1.3000 holds the top spot on the buyers’ radar.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.