GBP/USD has been licking its wounds after last week's Brexit-related blows. The UK Parliament is set to debate a controversial bill that has aggravated the EU, which is expected to pummel the pound, FXStreet’s analyst Yohay Elam reports.
Key quotes
“Despite having a large majority in parliament, PM Boris Johnson's victory in passing a controversial Brexit-related bill is unclear. The House of Commons will debate the Internal Markets bill, legislation which violated the Withdrawal Agreement – as ministers openly admit. The PM seems to have changed his mind on allowing for a customs border on the Irish Sea.”
“MPs kick-off the debate on Monday, with several members of the PM's Conservative Party saying they will vote against it or abstain. The House of Commons is set to vote on amendments and the entire bill before it goes to a committee. Discussions will last all week and form part of the never-ending Brexit saga. The pound dropped sharply last week and may extend its gains if it goes through and triggers additional angry exchanges with the EU.”
“Investors cheer the comeback of the Phase 3 coronavirus vaccine trial by AstraZeneca and the University of Oxford. The project was halted last week after a participant fell ill. A rival effort by Pfizer is also gaining traction after the American pharma behemoth said it hopes to provide immunization doses by year-end.”
“UK coronavirus cases continue rising as new restrictions are introduced. Gatherings are limited to six people and some areas are under more substantial limitations. In the US, infections and deaths are falling, albeit from a high level.”
“Market optimism is somewhat constrained after last week's correction and ahead of rate decisions on both sides of the Atlantic later this week. The Fed is set to sit on the sidelines after announcing a long-term dovish policy shift. The BoE is also on course to wait for the government's next moves before acting. Both banks' updated forecasts – which will likely express optimism from the recovery but concerns about the virus – will be closely watched.”
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 consolidates gains below 1.1400 on weaker US Dollar
EUR/USD consolidates its recovery gains below 1.1400 in early Europe on Monday. Upbeat risk sentiment on Trump's tairff concession news fails to lift the US Dollar, supporting the pair. US-China trade headlines will continue to dominate ahead of Fedspeak.
GBP/USD holds above 1.3100 as USD sellers refuse to give up
GBP/USD preserves its bullish momentum and regains the 1.3100 mark in the European morning on Monday. The sustained US Dollar weakness suggests that the path of least resistance for the pair remains to the upside. US-China trade updates remain in focus.
Gold price consolidates near all-time peak as bulls pause for breather
Gold price refreshes record high as escalating US-China trade war boosts safe-haven demand. US recession fears, Fed rate cut bets and a bearish USD further benefit the XAU/USD pair. Improving risk sentiment might cap the precious metal amid a slightly overbought daily RSI.
Bitcoin is on the verge of a breakout while Ethereum and Ripple stabilize
Bitcoin price approaches its key resistance level at $85,000 on Monday; a breakout indicates a bullish trend ahead. Ethereum and Ripple found support around their key levels last week, suggesting a recovery is in the cards.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.