Market Brief: BoJo’s Brexit Setback Hits Sterling


View our guide on how to interpret the FX Dashboard.

  • Parliament voted down Boris Johnson’s Brexit “programme motion timetable” 322-308, meaning that the PM must request an extension, which the EU is likely to grant. Johnson has been outspoken that he still intends to have the UK leave the EU by the end of the month, though he may accept a “technical” extension to work out any sticking points.
  • FX: The yen was the day’s strongest major currency after a late shift to risk-off trading. The pound was the day’s weakest major currency.
  • The Canadian dollar initially ticked lower as traders digested the result of last night’s election, but the currency ultimately finished in the middle of the major currency pack, helped along by rising oil prices.
  • US Data: Second-tier reports were mixed, with the Richmond Fed survey beating expectations but existing home sales coming in a bit soft.
  • Commodities: Oil gained nearly 2% on the day on a report that OPEC was considering deeper production cuts at its December meeting due to weaker global demand forecasts. Gold was essentially flat.
 
  • US indices closed marginally lower on the day, with the tech-heavy Nasdaq leading the late afternoon selloff.
  • Energy stocks (XLE) were the strongest major sector again today, while Technology (XLK) brought up the rear.
  • Stocks on the move:
    • Biogen (BIIB) exploded 26% higher after the company found data to help revive a potential blockbuster Alzheimer drug.
    • McDonalds (MCD) shed -5% after missing earnings estimates for the first time in two years before the bell today.
    • Facebook (FB) fell -4% on the day as more states joined an antitrust probe against the company. Now, 45 states, Guam, and the District of Columbia are working with the New York-led investigation. The company reports earnings next week.
    • Procter & Gamble (PG) gained 3% after the company reported solid earnings and raised its guidance for 2020.
    • Toy maker Hasbro (HAS) shed -17% after reporting disappointing earnings on the back of US-China trade tensions.
    • Under Armour (UA) rose 7% on news that the company’s long-time CEO Kevin Plank was stepping down.
    • Snapchat (SNAP) reported a loss after the bell today. The stock is trading -4% lower in volatile after hours trade as of writing.


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.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT