Prime Minister Boris Johnson is on a collision course with the Members of Parliament. Receiving the formality of Royal Ascent, as the Prime Minister seeks to limit opposing lawmakers, Members of Parliament, chances of halting Brexit on October 31st.
Although, there has long been talk of the gambit, the announcement that the United Kingdom’s Queen Elizabeth accepted a prorogue of Parliament sent the pound plunging. Printing a low at the 1.218 level. Fortunately, an improved mood for the market saved the day, with a recovery bullish movement following the initial downward spike. With the GBP/USD still trading below the 1.2250 level.
GDP/USD daily chart
Looking at the daily chart, we see the pound in a bearish trend, trading below the main daily simple moving average. There has been an upward pushing the last two weeks following the PGB printing a yearly low for 2019 at the 1.2015 level.
GDP/USD 30-minute chart
A 30- minute chart highlights the downward spike we saw following the announcement of the Queens agreement to Boris Johnsons proposal of placing limitations on lawmakers, that may prevent the Brexit scheduled for October 31st. In merely and hour we saw a huge drop from the 1.2281 level, reaching a daily low of 1.2189. since then we’ve seen some back and forth movement with a recovery upward movement to the 1.22469, followed by a swift downward movement, currently trading at the 1.22098 mark.
The Euro only continues to drop lower and lower. When we looked at the EUR/USD pair on the 7th, it was at a 4-month low. When we revisited it just under a week ago, it had managed to hit a low not reached since April 2017. And now the Euro has dropped further still, sinking below the 1.0800 mark. It seemed to recover slightly, but has now dropped back down, leading to a 34-month low.
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The Nikkei, or Japanese Stock Market Index, is down 1.6% after a fall of 330 points, marking a fourth straight day of losses.
The most obvious factor affecting this is the continuing fears of the coronavirus, which is affected all Asian markets as the severity of the virus only worsens.
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