For now, a strong day for the dollar, which is making good movements against other major currencies. But I expect the session ahead to revolve mainly around the pound as the UK Parliament returns from its summer break and will vote to remove the no-deal Brexit from the table. This will force Boris Johnson to replace Clause 50 again, most likely by January 2020.
In general, this will probably lead to new elections, so expect BoJo's majority to evaporate in such a turn of events. In addition, we remain focused on sentiment risk, as the US and China continue to have difficulty setting a date for trade talks in Washington this month.
For the moment, US stock futures are pointing up, and I expect Europe to start trading the same way. For the reasons outlined above, the session will maintain its cautious tone in anticipation of a catalyst to give direction to cash flows. The economic calendar does not provide much to market participants, so risk-sentiment remains the main actor.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.