{"id":151947,"date":"2019-07-22T11:59:43","date_gmt":"2019-07-22T15:59:43","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=151947"},"modified":"2019-07-22T11:59:43","modified_gmt":"2019-07-22T15:59:43","slug":"the-uk-faces-a-difficult-task","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/the-uk-faces-a-difficult-task\/","title":{"rendered":"The UK Faces A Difficult Task"},"content":{"rendered":"
July 22, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Markets Price in A BoJo Win<\/strong><\/h2>\n

The week started on weak footing today with no key releases on the economic calendar. Geopolitical headlines amid renewed\u00a0UK-Iran tensions have, however, managed to increase capital inflows<\/strong>, mainly noticed in crude oil.<\/p>\n

The rest of the markets remain somewhat muted except for the British pound.<\/p>\n

Sterling is taking a good beating as markets seem to be pricing in\u00a0a BoJo win<\/a><\/strong>\u00a0on July 22nd. Borris is pro-Brexit before the October deadline.<\/p>\n

UK Tanker Seizure Approach Could Destabilise Diplomacy<\/strong><\/h2>\n

Last Friday, Iran seized a British tanker in the Strait of Hormuz in a response to Britain\u2019s original impounding.<\/p>\n

The tit-for-tat move follows a round of recent scuffles not only with the UK but\u00a0also with the US,<\/a>\u00a0adding to concerns that a\u00a0diplomatic resolution is at risk<\/strong>. UK officials claim their seizure two weeks ago was legal, whereas Iran\u2019s Revolutionary Guard is \u201ctotally and utterly unacceptable\u201d.<\/p>

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In light of continuous reciprocal actions,\u00a0Europe is struggling to contain tensions<\/strong>. And this has been the case since US President Trump reimposed sanctions on Iran. Now, with Britain entering the game under the US\u2019 commands and a suspected breach of EU sanctions destabilizing the path for compliance,\u00a0a single miscalculated step could lead to war.<\/strong><\/p>\n

UK-Iran Relations Under Threat<\/strong><\/h2>\n

The UK is facing the difficult task of handling further conflicts while a new PM is being elected at home. With Borris Johnson likely to be the next prime minister,\u00a0diplomatic initiatives could be jeopardized<\/strong>\u00a0as Johnson is keen to strengthen his ties with the US.<\/p>\n

Although Germany and France called for the immediate release of the British ship, they acknowledge that the main\u00a0goal is to resolve the tanker issue with the aim of resetting the relations<\/strong>\u00a0between all affected countries.<\/p>\n

GBP\/CAD Down Most\u00a0<\/strong><\/h2>\n

Oil remains supported<\/strong>\u00a0by potential export disruptions, but it is\u00a0GBP\/CAD that suffered most of the losses<\/strong>on Monday. The pair has weakened from an open of 1.6334 to a daily low of 1.6256 and is currently taking a breather near 1.6275.<\/p>\n

With the leadership contest approaching, prices could head lower towards the 1.6178 support to form a double bottom. That scenario would weigh on prices and could end up on a fresh breakout. In the case of prices bouncing off at the said level, prices could recover all the way up to 1.6383.<\/p>\n

\"gbpcad\"<\/a><\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Markets Price in A BoJo Win The week started on weak footing today with no key releases on the economic calendar. Geopolitical headlines amid renewed\u00a0UK-Iran tensions have, however, managed to increase capital inflows, mainly noticed in crude oil. The rest of the markets remain somewhat muted except for the British pound. Sterling is […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-151947","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=151947"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151947\/revisions"}],"predecessor-version":[{"id":151955,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151947\/revisions\/151955"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=151947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=151947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=151947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}