- Pound set for increased Brexit volatility at the clock ticks
- US Dollar could claw back losses if Trump vs Biden debate & stimulus boost safe haven demand
- EUR/GBP sees support at 0.9079
BREXIT IN FOCUS FOR POUND TRADERS
Brexit uncertainties hold the Pound hostage as the British government’s self-imposed October 15 deadline draws closer. This deadline leaves time for policymakers to debate and pass the bill before the transition period ends on December 31.
Boris Johnson has recently put forward the Internal Market Bill. The bill threatens to undermine parts of the Withdrawal Agreement”.
Issues such as fisheries remain. For some Brexiteers, fishing grounds are a reclamation of British national sovereignty – until the end of the transition period, the UK still must adhere to the EU’s Common Fisheries Policy (CFP).
Brexit is adding uncertainty to an already fragile situation. given the covid backdrop.
US DOLLAR READY FOR GEOPOLITICAL DRIVEN WEEK
Domestic politics could boost safe haven US Dollar and drag on the equity markets and riskier currencies such as the Australian and New Zealand Dollars, emerging market currencies
Questions over how Coney Barret’s nomination of the Supreme Court will impact bipartisan fiscal stimulus talks continue to be a major point of uncertainty. As data reveals that the economic recovery is slowing the need to quickly inject more stimulus is growing.
Declining expectations that Democrats and Republicans will agree plus the Supreme Court nomination are weighing heavily on market mood. Rising covid cases are adding to the downbeat mood
Chairman Jerome Powell has been clear that monetary policy can only do so much. With rates between 0.25%-0.00%, on the ball is in Congress’ court amid a polarizing election. How a fiscal stimulus package could make it through Congress prior to 3rd November is a concern, dragging on sentiment and lifting the US Dollar