Forex Marketz Daily Forex News – Fully Markets Update
The British pound sold off against the U.S. dollar, on Tuesday, during the Asian trade session.
Overnight, news reports emerged that British Prime Minister Boris Johnson is now seeking a hard line on the United Kingdom’s transition period after Brexit.
The Australian dollar fell lower after a dovish tone was indicated in the Reserve Bank of Australia’s monetary policy meeting minutes.
The British pound fell 0.7 percent against the U.S. currency to trade at 1.3236. This is below its better than 18 month high price point, set on Friday, at 1.3516.
The GBP/USD Forex market was last trading at 1.3286. This is down 0.3 percent from its close during the U.S. trade session overnight.
The AUD/USD currency exchange rate fell 0.2 percent to trade at 0.6868. The Reserve Bank of Australia, in their monetary policy minutes, opened the door for another rate cut by as soon as February 2020.
This is because household incomes are weak and labor market conditions are starting to sour.
British Pound Traders Monitor Fresh Brexit Headlines and Start to Worry
Overnight, news reports surfaced that Prime Minister Boris Johnson, was going to use his commanding election victory to revise the Withdrawal Agreement Bill.
This revision would have, in place, final arrangements for the United Kingdom to leave the European Union in place by December 31 2020. This is according to Britain’s ITV broadcaster.
This development dashes hopes the United Kingdom would be flexible in its approach to leaving the Eurozone at the end of 2020 with a firm trade deal in place. This now looks like this will happen by January 31, 2021.
Also, in the headlines this morning, the Reserve Bank of Australia, in their monetary policy minutes, indicated that they are worried about the growth of personal wages. This is likely to have a negative impact on inflation and consumption.
In turn, this will lead to weaker economic growth. Along with weakening labor market conditions, the RBA could cut rates again early next year.
