Brexit Talks Wane, GBP Tumbles

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1. Brexit Talks Wane, GBP Tumbles

The pound wallowed near a one-month low on deepening uncertainty over Brexit. Britain is apparently giving up its efforts to strike a deal with the uncompromising European Union and will not return to the table. The breakdown in talks came after Prime Minister Boris Johnson and Chancellor Angela Merkel of Germany had a phone conversation in which, according to one British official, Ms. Merkel dashed hopes of a deal.  

 

2. Forex Preview: USD Firms

The USD held high despite the expansionary statements from Powell also amid lack of better alternatives in the currency markets. The EUR failed once more to take the 1,10 level with further possible setbacks ahead given the Brexit and the internal economic issues pressuring the common currency. Elsewhere, the Turkish lira wallowed but could see some upside on the latest Trump tweets which revealed a sudden change of heart when it comes to Turkey. After previously threatening to obliterate Turkey’s economy, Donald Trump mentioned Turkey as a big trade partner and important ally within NATO in his latest tweets which could help ease the situation and allow the TRY to put a stop to its massive slide despite military action in northern Syria.

 

3. Global Bourses Dip

Investors turned to less risky assets on Wednesday, as Hopes for a breakthrough in U.S-China trade talks waned today, as tensions between the U.S. and China deepened on a set of new spats from the latest U.S. blacklisting of 28 Chinese companies, to capital controls,  Visa bans, Chinese domestic issues over the Uighur situation and even the NBA scandal in China. NBA team general manager, Daryl Morey, posted a message on Twitter that supported HK protests which was met with massive backlash from Chinese media. Overall hopes for a fruitful resolution to the trade dispute during this week’s talks have significantly faded if not disappeared completely which can clearly be seen by the broader stock-market sell-off. 

 

 

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

 

Sources: 

CNBC Oct 9, 2019 2:48 AM ET

Investing Oct 9, 2019 05:20 AM ET

Bloomberg Oct 9, 2019 05:20 AM ET

 

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