Latest Brexit Developments
It was a tough day for Prime Minister Boris Johnson yesterday, as his trip to Luxembourg didn’t go to plan. the Prime Minister decided to avoid a planned press conference due to the amount of protesters and Xavier Bettel the Prime Minister of Luxembourg didn’t hold back when he took the stand. The PM stated that he hears a lot but doesn’t read a lot, insinuating that there is no new plan. In addition, Mr Johnson also met Jean-Claude Juncker President of the EU Commission and the President agreed to intensify talks but stated that there had been nothing new to date. Reports are now suggesting that Boris Johnson team will meet the EU negotiators daily in Brussels.
Today Boris Johnson will eagerly await for the Supreme Courts verdict on whether the Prime Ministers proroguing of Parliament was legal. Last week we learnt that the Scottish courts believe it not to be legal but the London high court stated that this is not a court matter. With MPs set to return on the 14th October, if the Supreme court rule that it was unlawful, MPs could be back in Parliament in the next 7 days debating the Brexit saga once more.
How the Saudi Arabia oil attacks affected GBP/USD rates?
In general the pound has gained strengthen in the last couple of weeks due to the law being passed that an extension will materialise if Boris does not get a deal over the line. However yesterday the US dollar made inroads against the pound due to the major attacks in Saudi Arabia. Air strikes over the weekend have cut the global oil supply by 5%, which has caused investors to flock to the safe haven US dollar.
Even though the US dollar as strengthened, I expect the Brexit story will drive the currency pair for the next 8 weeks. If Boris Johnson is to be believed then the UK will secure a deal or crash out on the 31st October. Either way major volatility should be expected. However If Boris back tracks and an extension materialises the debate will go on.
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