MacroWatch A new Brexit deal sends GBPUSD surging close to 1.30


The UK Government last week built on the prior week’s breakthrough with the Irish Government with UK and European Union agreeing a new Brexit deal.

The attention turned to the UK Parliament Saturday for a meaningful vote on the new deal, but the Letwin amendment (an insurance policy to ensure that a no deal Brexit did not happen at the end of October) meant that there was not meaningful vote and the UK Government were forced to send a Brexit extension letter to the EU. A meaningful vote is now expected early this week, possibly Monday.


The financial market impact was for an extension of the global equity markets and a rally in the Pound as the GBPUSD Forex rate extended close to 1.30.


Both the US and China have highlighted that the “Phase 1” trade deal agreed the previous week still requires much work, whilst the US indicated that tariff increases could occur if a deal is not reached by December.

The enquiry into the impeachment of US President Trump continues but with limited impact on financial markets. The possibly negative impact from an impeachment means that this enquiry and process will need to be monitored into October and maybe year-end.

An initial escalation in the Syria-Turkey conflict then moved to a tentative ceasefire, but the mounting risks for global financial markets is for this conflict to expand into a more substantial diplomatic event.

The US Congress is in the process of passing the Hong Kong Human Rights and Democracy Act, which is expected to pass through the Senate soon. China has condemned this ruling as interference in China’s internal affairs and have indicated “countermeasures” should the bill pass.

Key this week

Date Key Macroeconomic Events
21/10/19 PBOC interest rate decision
22/10/19 Japanese Holiday; Canadian Retail Sales
23/10/19 German 10yr Bond Auction
24/10/19 Global Markit PMI; ECB interest rate decision; US Capital Good Orders
25/10/19 German IFO Survey

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comment on this video

Your email address will not be published. Required fields are marked *

Latest Related News

The Forex Zone Forecasts – A solid US Dollar tone with risk on theme

The US Dollar has remained firm, though slightly hesitant driven by positivity from the US-Sino trade talks and upbeat comments from various Fed speakers on the US economy. The Forex Zone looks at day trade possibilities and forecasts for the major Forex rates; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY. EURUSD: Prod at key 1.0989 A Thursday prod just below key 1.0989 for an intermediate-term shift to… Continued

GBPUSD Forecast – Upside bias

A Thursday rebound to reject the minor Wednesday setback that held above the 1.2815/1.2799 support area, to retain upside forces from Monday's surge up through the November down trend line and also 1.2832 and 1.2878 resistances, to leaves risks higher for Friday. We see an upside bias for 1.2898; break here quickly aims for 1.2917 and maybe notable 1.2976.But below 1.2815/2799 opens risk up to 1.2768, maybe 1.2749. Intermediate-term… Continued

Pound surges after Brexit Party “stands down”

The spotlight shifted to the UK on Monday, where general election politics had a significant impact on the Pound.Nigel Farage stated that the Brexit Party would not put candidates up for election in those parliamentary seats that were won by the Conservative Party in 2017.This is seen as a positive for the Tories, as it means that the Leave vote will not be split in… Continued

The Forex Zone – US Dollar strength resumes

The US Dollar has seen a strong recovery over the past week in reaction to the early November publication of the October US Employment report, which was very robust. The recovery has been assisted by broadly positive news flow from the US-China trade talks. The Forex Zone spotlights day trade views for the major Forex rates; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY. EURUSD: Downside… Continued

GBP in focus into the Bank of England Meeting

The macroeconomic spotlight Thursday is on the Bank of England Meeting and no changes in interest rates are expected.Financial market participants will focus on the any change in tone given shifts in UK economic political backdrop with the calling of a general election since the last meeting. The US Dollar has stayed firm this week as US Treasury Bonds moves to higher yields has encouraged… Continued

Forex Brokers in your location