FX Brief: Battered Pound Off Lows
Fawad Razaqzada July 22, 2019 11:53 AM
- As European investors prepared to leave their desks for the day, the Swiss franc was showing relative strength, while the Canadian dollar was among the weakest. The pound bounced off its worst levels, while the euro was still clinging onto the key $1.1200 support.
- The damage to the pound has been fairly marginal after a battering last week. The Parliament has already voted to make it harder to push through a no-deal Brexit, whoever takes over Theresa May’s job this week. We will find out on Tuesday once all the votes have been tallied whether it is the favourite and hard-line Brexiteer Boris Johnson or Jeremy Hunt. But the legal framework is already in place to prevent a hard Brexit, so the pound may even end up pushing higher in the early days of Johnson’s leadership. Meanwhile Chancellor Phillip Hammond has declared he will resign if Boris wins, while Sir Alan Duncan has already quit as a Foreign Office minister.
- Wall Street traded mixed after a firmer open as oil prices, which had boosted energy stocks, came off their highs. Iran announced it had captured 17 spies working for the CIA and sentenced some of them to death. This comes on the back of Iran’s seizure of a British tanker last week. Some oil inventors are concerned that Iran’s deteriorating relationship with the West may lead to supply disruptions in the region.
- No economic reports are on today’s calendar, but volatility should pick up later in the week.
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.