- GBP/USD benefits from the news that the EU is ready to allow a three-month Brexit extension to the UK.
- French push for a shorter extension mostly ignored, no renegotiation of the deal permitted.
- A formal announcement and the UK’s response will be closely observed for fresh impulse.
With rising calls of the EU’s readiness to announce a three-month Brexit extension, the GBP/USD pair stops recent downside while taking the bids to 1.2825 at the start of the week’s Asian trading session on Monday.
The Guadian recently ran a story suggesting that the European Union (EU) is preparing to sign a deal that will offer a three-month Brexit extension, to January 31, 2020, with an option for the United Kingdom (UK) to leave earlier if a deal is ratified.
The news report turns down the scope of any renegotiation to the recently agreed deal while leaving the door open for exit on the first day of the month after a deal is ratified.
France pressed for a shorter extension till November 15 but the same is absent from the leaked document mentioned by The Guardian
“It is also says the UK has “an obligation” to nominate a candidate to join the European Commission. The prime minister has previously said he will not put forward a nominee,” says the Guardian.
With the EU on its way to turning down scope of no-deal Brexit, a formal announcement will be awaited during Monday’s EU/British session to trigger drama in the UK where signals for snap elections will be flashed.
It should also be noted that the US Dollar (USD) mostly benefits from the recent positive sentiment surrounding the US-China trade talks and has Chicago Fed National Activity Index for September, -0.37 expected versus 0.10 prior, up for publishing on the economic calendar.
Technical Analysis
The Cable bounced off 23.6% Fibonacci retracement of its latest run-up since early-October, which in turn increases the odds of a fresh rise towards 1.3000 round-figure. On the downside break of 23.6% Fibonacci retracement level near 1.2820, June month high nearing 1.2785 and 38.2% Fibonacci retracement close to 1.2700 will be on sellers’ 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
AUD/USD: Next stop emerges at 0.6580
The downward bias around AUD/USD remained unabated for yet another day, motivating spot to flirt with the area of four-week lows well south of the key 0.6700 region.
EUR/USD looks cautious near 1.0900 ahead of key data
The humble advance in EUR/USD was enough to partially leave behind two consecutive sessions of marked losses, although a convincing surpass of the 1.0900 barrier was still elusive.
Gold extends slide below $2,400
Gold stays under persistent bearish pressure after breaking below the key $2,400 level and trades at its lowest level in over a week below $2,390. In the absence of fundamental drivers, technical developments seem to be causing XAU/USD to stretch lower.
Why this week could be explosive for Ethereum
Ethereum (ETH) is down nearly 1% on Monday as exchanges have begun confirming Tuesday as the launch date for ETH ETFs. Considering the ETH ETF launch and the upcoming Bitcoin Conference, this week could prove crucial for Ethereum.
What now for the Democrats?
Like many, I applaud Biden’s decision. I would have preferred that he’d made it sooner, but there’s still plenty of time for the Democrats to run a successful campaign. In fact, I wish something on the order of a two-month campaign – as opposed to a two-year campaign – were the norm and not the exception.