Forex Marketz Daily Forex News – Fully Markets Update
During the Asian trade session, on Tuesday, the British pound (GBP) traded near its yearly low. Traders are worried that the front runner to become the next Prime Minister of the United Kingdom, Boris Johnson, could lead to the country crashing out of the European Union with no deal in place.
The Australian dollar is also at its lowest price level this year. The Australian dollar is on the defensive thanks to more rate cuts being signaled by the Australian central bank for this year. The AUD is also facing headwinds, as its largest trade partner, China is slowing down.
The safe haven Japanese yen was trading steady this morning as was the euro. Traders are waiting on the monetary policy meeting, with the Federal Reserve Bank, beginning today. A decision is scheduled for Wednesday during the North American trade session. Traders are also waiting on commentary from European Central Bank policy makers who are meeting today in Portugal.
The British Pound Weakens on Brexit News
The British pound remained on the defensive in the benchmark GBP/USD Forex market. The pound hit a better than five month low at $1.2532 on Monday. This market was last trading at $1.2539.
The GBP also hit its weakest price level against the euro, since January, at 89.50 pence. It had been at a two year low of 84.56 pence at the start of the month.
Yesterday, Former foreign minister Boris Johnson got a boost to succeed current PM May. One of his former rivals Matt Hancock is now backing him. That rattled the GBP/USD market. Johnson is the face of the official campaign to leave the European Union. He has promised to exit the EU with or without a deal in place.
