{"id":154774,"date":"2019-09-04T10:45:40","date_gmt":"2019-09-04T14:45:40","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=154774"},"modified":"2019-09-04T08:50:37","modified_gmt":"2019-09-04T12:50:37","slug":"no-deal-bojo-strategy-blocked","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/09\/no-deal-bojo-strategy-blocked\/","title":{"rendered":"No-Deal BoJo Strategy Blocked"},"content":{"rendered":"
September 4, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

The UK PM lost the first and most critical battle in Parliament yesterday.\u00a0MPs voted to block a no-deal Brexit<\/strong>.<\/p>\n

Rebel Torry MPs joined other party MPs<\/a>\u00a0in a bid to take power from Boris Johnson and avoid a hard Brexit. Forex traders were initially thought to have taken\u00a0the headlines with a positive tone, but it was the dollar\u2019s weakness that allowed cable to surge over 100 pips.<\/p>\n

Cable\u2019s Surge Mainly Owed to a Weaker USD<\/strong><\/h2>\n

The\u00a0opposition supported another extension up until January 31st<\/strong>\u00a0and not a snap election. Given that, one would think that market participants would have discounted earlier losses on the British pound to that end.<\/p>\n

However, the\u00a0market\u2019s reaction was rather minimal as the UK PM threatened a snap election by October 15.\u00a0<\/strong>And it was the\u00a0dollar\u2019s weakness<\/strong>\u00a0that allowed GBPUSD to soar to fresh highs, as well as a technical rejection at the $1.20<\/strong>\u00a0psychological level.<\/p>\n

The USD plummeted at the NY open after a long-awaited\u00a0reaction to the additional tariffs on Chinese products, as well as a recessionary manufacturing PMI.\u00a0<\/strong>The latter, of course, is seemingly a\u00a0result of the trade war escalation.<\/p>

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Extention & Snap Election Bills to be Voted on Today<\/strong><\/h2>\n

Today, parliament will vote on a bill that will\u00a0legally prevent\u00a0a no-deal<\/a><\/strong>\u00a0exit<\/a>\u00a0by October 31st. In addition, they will\u00a0vote on a motion to call a general election<\/strong>.<\/p>\n

Parliamentarians made it clear, however, that before the Brexit delay bill passes, there won\u2019t be any support in the Commons. And their vote is necessary as the motion requires a 2\/3 majority.<\/p>\n

This keeps the\u00a0general election vote in the picture, but not before October 19th<\/strong>. That was the date on which MPs suggested the extension bill should be triggered should the UK government fail to agree with the EU.<\/p>\n

Pound Higher as Trump Debacle Continues<\/strong><\/h2>\n

The $1.20 rejection seems to suggest a reversal<\/strong>. Following a false breakout below the key level during the early London session yesterday at 1.1960, prices on GBPUSD formed a\u00a0pin bar<\/strong>. Should the pair break above 1.2185, chances of a further slide would decrease. If the exchange rate crosses\u00a0outside the upper descending trendline, GBPUSD could really turn around.<\/strong><\/p>\n

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

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

By Orbex The UK PM lost the first and most critical battle in Parliament yesterday.\u00a0MPs voted to block a no-deal Brexit. Rebel Torry MPs joined other party MPs\u00a0in a bid to take power from Boris Johnson and avoid a hard Brexit. Forex traders were initially thought to have taken\u00a0the headlines with a positive tone, but […]<\/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-154774","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154774","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=154774"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154774\/revisions"}],"predecessor-version":[{"id":154782,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154774\/revisions\/154782"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=154774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=154774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=154774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}