{"id":157898,"date":"2019-10-18T12:55:04","date_gmt":"2019-10-18T16:55:04","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=157898"},"modified":"2019-10-18T12:17:06","modified_gmt":"2019-10-18T16:17:06","slug":"all-eyes-on-britains-super-saturday-brexit-showdown","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/all-eyes-on-britains-super-saturday-brexit-showdown\/","title":{"rendered":"All eyes on Britain’s ‘Super Saturday’ Brexit showdown"},"content":{"rendered":"
October 18, 2019<\/div>
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By Lukman Otunuga, Research Analyst, ForexTime<\/a><\/strong><\/p>\n

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After three and a half years of chronic uncertainty, drama and constant toeing and froing, the Brexit saga is reaching a critical turning point.<\/p>\n

In a positive development, Boris Johnson has agreed on a Brexit deal with the European Union. However, it is far too early for any celebrations given how the deal will need to be approved by the House of Commons on Saturday. While the revised agreement has many similarities with the one agreed by Theresa May, the major difference lies in the proposal on Northern Island. The new Brexit deal simply replaces the Irish backstop plan with a new arrangement where the North will continue to follow EU regulations on goods after Brexit.<\/p>\n

With Northern Ireland\u2019s DUP already refusing to support Boris Johnson\u2019s deal, investors should brace for another showdown in Westminster on Saturday. Although EU leaders have left the doors open for a Brexit extension beyond October 31st if Johnson\u2019s plan is rejected by the commons, this is simply kicking the can further down the road.<\/p>\n

If Boris Johnson\u2019s deal is given the thumbs up by the House of Parliament this weekend, it will be a major relief for the British pound as fears of a no-deal Brexit completely fade. This welcome development should push the GBPUSD well above 1.30 towards 1.318. Alternatively, if Johnson\u2019s deal fails to pass through parliament, the Pound is seen sinking back towards 1.27 as uncertainty makes an unwelcome return.<\/p>\n

Will the Brexit saga come to end on Saturday? Or will this be the start of another drama-filled season? This is the question on the mind of many investors.<\/p>\n

Whatever the outcome of \u2018Super Saturday\u2019s\u2019 Brexit showdown, it will certainly have a profound impact on Sterling.<\/p>\n

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Gold waits for fresh catalyst<\/strong><\/p>\n

Gold is finding comfort within a $20 trading range as investors remain cautiously optimistic over the United States and China finalizing a \u201cphase one\u201d trade agreement.<\/p>\n

Given how high-level trade talks between both sides will resume next week, Gold is positioned to remain range-bound until a fresh directional catalyst is brought into the picture. A sense of optimism surrounding the current Brexit developments is also impacting appetite for the safe-haven metal with prices trading around $1491 as of writing. Although a softer Dollar could provide Gold bulls with some support, the real action may not be seen until next week following the outcome of \u2018Super Saturdays\u2019 showdown and trade talks.<\/p>\n

Focusing on the technical picture, Gold remains range-bound with support around $1480 and resistance at $1500. A breakout above $1500 should encourage a move higher towards $1515. Should prices secure a weekly close below $1480, Gold is likely to sink towards $1465.<\/p>\n

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Commodity spotlight – WTI Oil\u00a0<\/strong><\/p>\n

Oil prices are pushing higher despite China\u2019s economic growth slowing to 6% during the third quarter of 2019.<\/p>\n

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Given how China is the world\u2019s largest energy consumer, signs of slowing economic growth from the nation could ignite fears of a drop in demand for crude oil. Regardless of recent gains, Oil markets remain heavily influenced by demand side factors revolving around trade uncertainty and global growth fears. If the United States and China officially sign a \u201cphase one\u201d trade agreement, Oil prices have scope to push higher as trade tensions ease.<\/p>\n

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Focusing on the technical picture, WTI Oil is trading above $54 on the daily charts. A weekly close above this level should encourage an incline towards $55.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n<\/div>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Lukman Otunuga, Research Analyst, ForexTime After three and a half years of chronic uncertainty, drama and constant toeing and froing, the Brexit saga is reaching a critical turning point. In a positive development, Boris Johnson has agreed on a Brexit deal with the European Union. However, it is far too early for any celebrations […]<\/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-157898","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/157898","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=157898"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/157898\/revisions"}],"predecessor-version":[{"id":157910,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/157898\/revisions\/157910"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=157898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=157898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=157898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}