Market Brief: Farage’s Brexit party will not contest Conservative-held seats
Fawad Razaqzada November 11, 2019 7:45 AM
A summary of news and snapshot of moves ahead of the US session.
- The new week has begun with slight risk off tone. At 12:00 GMT, the major European stock indices were down across the board, with the FTSE down more than 1% thanks to a big spike in GBP. US index futures pointed to a lower open on Wall Street. Safe-haven gold was rebounding slightly after it suffered its worst week in 3 years last week. In FX, the pound was the strongest major currency, while the Aussie brought up the rear.
View our guide on how to interpret the FX Dashboard
- The biggest news today has been a political one: Nigel Farage said his Brexit party will NOT contest the Conservative-held seats but will do so for Labour amid concerns over a second referendum. This is a major boost for PM Boris Johnson’s Brexit deal, and GBP bulls who favour a soft exit from the EU.
- Meanwhile, the UK economy avoided a technical recession, eking out a growth of 0.3% in third quarter following a 0.2% contraction in Q2. However, expectations were for a slightly stronger GDP reading of 0.4%. Meanwhile manufacturing production fell by 0.4% m/m, disappointing expectations of a smaller 0.2% decline. This weighed on industrial output, which fell by 0.3% m/m. Construction output at -0.2% was better than -0.5% anticipated, however.
- It looks set to be a quieter afternoon, at least from a data perspective, with the US and Canada observing Veterans/Remembrance Day.
- Things should pick up as the week wears on - HERE is our week ahead preview.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.