Breaking News
0

Pound Slips Below 1.2100 As Johnson Promises Hard Brexit

By Boris SchlossbergForexAug 20, 2019 07:59AM ET
www.investing.com/analysis/pound-slips-below-12100-as-johnson-promises-hard-brexit-200456602
Pound Slips Below 1.2100 As Johnson Promises Hard Brexit
By Boris Schlossberg   |  Aug 20, 2019 07:59AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Market Drivers August 20, 2019

  • BoJ reiterates commitment to hard Brexit
  • Markets in the summer stall
  • Nikkei 0.55% Dax 0.15%
  • UST 10Y 1.59%
  • Oil $56/bbl
  • Gold $1499/oz
  • BTC/USD $10750
  • Europe and Asia:

  • No Data
  • North America:

  • No Data
  • It's been a very quiet dealing session in Asian and early Europe today with virtually no economic data or fresh headlines on the tape as majors traded listlessly in very tight ranges with many players away for the final two weeks of summer.

    The only discernible movement was in the pound which weakened below the 1,2100 on comments by Boris Johson that he was committed to taking the UK out of EU by the October 31st deadline regardless of whether there was a deal or not. Mr. Johnson is scheduled to hold talks with Macron and Merkel later this week, but if the talks fail to make any progress they could actually push cable lower on the market loss of faith in any deal before October.

    President Trump waddled into the negotiation yesterday noting that he was enthused about a free trade pact between US and UK once Brexit took place, but any possible US/UK deal is very likely to run into massive snags on issues of agricultural subsidies but even more so will have almost no chance of being ratified by Congress which would view such a move as a threat to economic well being of Ireland.

    In short, a hard Brexit instead of allowing the UK to freely create bilateral deals could leave it quite isolated in the G-20 universe and face the possible shortages of key commodities and medicines as customs duties and regulations delay the free flow of goods.

    For now, the market continues to view the whole saga as just more political posturing but with a deadline quickly approaching any failure to make progress is likely to result in more volatility in the pair. So far the pound has managed to hold the post-referendum lows if 1.1900 but if markets sense that a no-deal Brexit may actually become a reality that level could quickly fall by the wayside as selling resumes with force.

    Pound Slips Below 1.2100 As Johnson Promises Hard Brexit
     
    Pound Slips Below 1.2100 As Johnson Promises Hard Brexit

    Add a Comment

    Comment Guidelines

    We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

    • Enrich the conversation
    • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
    • Be respectful. Even negative opinions can be framed positively and diplomatically.
    •  Use standard writing style. Include punctuation and upper and lower cases.
    • NOTE: Spam and/or promotional messages and links within a comment will be removed
    • Avoid profanity, slander or personal attacks directed at an author or another user.
    • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
    • Only English comments will be allowed.

    Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

    Write your thoughts here
     
    Are you sure you want to delete this chart?
     
    Post
    Post also to:
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
     
    Are you sure you want to delete this chart?
     
    Post
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Add Chart to Comment
    Confirm Block

    Are you sure you want to block %USER_NAME%?

    By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

    %USER_NAME% was successfully added to your Block List

    Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

    Report this comment

    I feel that this comment is:

    Comment flagged

    Thank You!

    Your report has been sent to our moderators for review
    Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

    Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
    Continue with Google
    or
    Sign up with Email