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GBP Plummets As Brexit Hits Yet Another Roadblock

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1. GBP Plummets As Brexit Hits Yet Another Roadblock

EU bourses turned bearish this morning after British lawmakers forced Prime Minister Boris Johnson to pause the progression of his Brexit deal. British lawmakers voted in principle for Johnson’s Withdrawal Agreement Bill to proceed through parliament on Tuesday night. However, the House of Commons rejected the prime minister’s plans to get it approved within three days, which offered a limited time frame for MPs to review the legislation. The GBP fell on the uncertainty on the finish mile in this Brexit Deal Dilemma, however, was supported well at the 1.2840 (the Brexit vote low from 2016) and is awaiting the new developments today.

2. Earnings Disappoint 

The US reporting season kicked in and Texas instruments was a first big loser and generally, the tone was not all too positive in the US. Some of the largest and most well-known companies in the U.S. — including McDonald’s, UPS and Lockheed Martin — provided their financial updates yesterday which fell short of expectations. Today we expect some heavyweights including as Boeing, Caterpillar or Microsoft and Tesla all of which will report which is very likely to influence the markets.

 3. Forex Preview: USD Recovers

The USD recovered somewhat on the latest Brexit development, yet has a big issue of its own with the Fed needing to up its liquidity injections which is rather a sign of the USD in need of easing, which would push its price further down. The EUR failed to stay above the 1.1150 and even fell below the 100-day MA. Depending on the Brexit development, the EUR could be back up sooner than later if the USD weakness continues further. 

4. Oil Prices Rise, Gold Unchanged

Oil prices saw a build yesterday yet traded higher to $54 on the day from which it could be rejected further down if we get risk-off today on bad earnings. Elsewhere, gold remained unchanged slightly below the $1,500 with good upside potential if stock markets slide further. 

You can find and trade CFDs on all of the above-mentioned assets on BDSwiss Forex/CFD platforms.

Sources:
CNBC Oct 23, 2019 2:48 AM ET
Investing Oct 23, 2019 7:33 AM ET
Bloomberg Oct 23, 2019 6:45 AM ET
Reuters Oct 23, 2019 05:58 AM ET

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