Asia Pacific Market Open – British Pound, Brexit, Theresa May, Crude Oil, AUD/USD
- British Pound highly volatile on latest Brexit updates, Theresa May’s deal heads to parliament next
- Crude oil prices[1] paused 1984+ record losing streak on OPEC headlines as Apple hurt US equities
- AUD/USD[2] may look past jobs data for risk trends as anti-risk Japanese Yen[3] may appreciate ahead
Check out our 4Q forecast for the British Pound in the DailyFX Trading Guides page[4]
The British Pound continued being jawboned by the latest Brexit headlines. Earlier this session, reports that a couple of members of parliament could resign sent it lower[5]. Then, Sterling was uplifted as UK Prime Minister Theresa Mayannounced a Brexit deal that her cabinet agreed on[6]. By the end of Wednesday’s session, GBP/USD[7] was little changed.
Not only is this trading dynamic the case on a near-term basis, but Sterling in general has been struggling to find direction lately. Looking at an equally weighted basket on the chart below, GBP[8] remains in consolidation mode after it halted its descent in August. More obstacles remain down the road for Brexit talks including Mrs. May getting her draft pushed through parliament and an EU-UK summit some time later this month.
GBP Index (Average Versus EUR, JPY, CAD and USD)
Chart created in TradingView
Crude oil prices halted its longest consecutive losing streak since at least 1984 in the wake of comments from OPEC’s President. United Arab Emirates Energy Minister Suhail Al Mazrouei said that the cartel and its
