Forex Marketz Daily Forex News – Fully Markets Update
The British pound has been on a wild ride since Thursday. The volatility follows comments from UK Prime Minister Boris Johnson after he called for a national election.
The British pound against the dollar, in the benchmark GBP/USD currency market plunged lower than recovered some losses to close lower by half a percent on Thursday.
The British currency has been hurt by Brexit uncertainty. However the GBP has been supported, through October as the chance of a no-deal Brexit has ended. The pound recouped losses, thanks to that, despite PM Johnson’s third attempt to force elections.
During the Asian trade session, today, the GBP/USD exchange rate fell as much as 0.575 percent to trade at 1.285. However this market is still up about five percent for the month.
On Monday, the GBP/USD surged to a 66 month high price point only to come back under pressure as the UK Parliament blocked PM Johnson’s Brexit plan. The United Kingdom has asked for a third extension as they are scheduled to leave the European Union on October 31.
Forex Traders Digest Election Comments sending the British Pound on a Wild Ride
Prime Minister Boris Johnson is asking parliament to approve a national election scheduled for December 12. He wants to break the deadlock around Brexit.
Polls show that his Conservative Party is leading in the polls. He wrote a letter to main opposition leader, Labor Party head Jeremy Corbyn. Johnson said that he will give parliament more time to approve his Brexit deal but lawmakers must agree to his call for elections.
Optimism surrounding Brexit has led money markets to slash bets that the Bank of England will cut rates next year. These futures have since risen with a rate cut coming in 2020 at ninety percent. This is up from sixty percent seen last week.
