Forex Today: Brexit regains the spotlight in a quiet start to the week
|Here is what you need to know on Tuesday, September 8:
It was a slow start to the week, with volumes at minimums due to a holiday in the US. The greenback remained generally strong, although most major pairs remained confined to tight intraday ranges.
The GBP out-stood for its weakness, as mounting concerns about the UK post-Brexit’s relationship with the EU fell into the spotlight. This Monday, the EU Commission said that they would do everything possible to reach an agreement aligned with the EU’s long term interest, but also noted that “the UK's decision to leave the single market will inevitably create barriers,” adding they are ready to trade with the kingdom under WTO terms. UK PM Johnson, on the other hand, said that if a deal is not reached by October 15, Britain will accept no deal and move on. Tensions remain around the fishing industry and state aid.
The EUR/USD pair continued to hold above the 1.1800 level, stuck around 1.1820. Buying interest, however, keeps decreasing.
Asian shares closed the day in the red, but European ones managed to post substantial gains, supporting some risk-on mood for this Tuesday. Anyway, Japan will release the final version of its Q2 GDP, expected to be downwardly revised to -8.1%.
Due to US markets being closed, commodities were also confined to tight intraday ranges. Gold holds around $1,930 a troy ounce, while WTI trades around $39.00 a barrel.
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