Johnson loses Supreme Court case, parliament recalled

25th September 2019 Market Update

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🇬🇧 GBP –  Sterling was initially buoyed yesterday following Britain’s Supreme Court ruling unanimously that Boris Johnson’s prorogation of parliament was unlawful. As a result, MPs and peers will return to Parliament later today with Johnson facing calls to resign. Despite this, opposition parties are likely to refute Johnson’s request for a general election, until a no-deal Brexit is completely off the cards. Political developments will likely be a key determinant of how exchange rates move today. There was no data of significance from the UK yesterday, and none is being released today.

🇪🇺 EUR – With the unravelling political drama in the UK and US, the EU as stayed out of the spotlight. Following on from the plethora of weak manufacturing and services data on Monday from Europe, the euro remains relatively weak. There was no data of note yesterday from Europe, and no data is being released today.

🇺🇸 USD –  The Democratic Party launched impeachment proceedings against Donald Trump yesterday, with Democratic House speaker Nancy Pelosi accusing Trump of betraying his oath of office. The scandal erupted as a whistle-blower raised concerns about conversations Trump had held with a foreign leader. The dollar strengthened in response, as stocks dropped following the news. Yesterday afternoon CB consumer confidence was below market expectations, and this afternoon US crude oil inventories are being released.

 

Summary:

GBP: Parliament is recalled, as the prorogation was ruled as unlawful
EUR: Quiet day in Europe as the political drama unfolded in the UK and US
USD: Democratic Party launch impeachment proceedings against Trump


 

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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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