How long is the Brexit piece of string?

 

Pound waits for EU

The pound was once again in limbo during the Asian session as investors await the news of the Brexit extension. The favourite period appears to be three months, which would take it to January 31, while France were allegedly pushing for an earlier exit data around mid-November. All should be revealed later today, though there is some speculation in the UK press that a final decision may not be forthcoming.

In the meantime the pound suffered yesterday after PM Johnson tested the waters for a December snap election. He said he will give MPs more time to debate his Brexit deal if they agree to a December 12 election. We can probably expect a motion to be tabled on Monday calling for a general election, which would require two-thirds of MPs to vote for it.

GBP/USD slid to the lowest level in a week yesterday but has only declined 0.07% so far today. The pair failed to close below the 23.6% Fibonacci retracement level of the October 8-21 rally at 1.2820, while the 200-day moving average sits at 1.2715 today.

 

GBP/USD Daily Chart

Source: OANDA fxTrade

 

Double sentiment

It’s a relatively quiet end to the week on the data front, with two German sentiment indicators on the agenda. The Gfk consumer confidence survey for November is seen slipping to 9.8 from 9.9 this month while the October IFO business expectations index is seen slightly better at 91.0 from 90.8 last month.

The only US data on tap is the Michigan consumer sentiment index for October, which is seen unchanged at 96.

 

The full MarketPulse data calendar can be viewed at https://www.marketpulse.com/economic-events/

 

Have a great weekend. Come on England!!

 

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.