Trading news from European morning session
- UK's Attorney General informs Labour Party they can call election via one line bill
- GBPUSD triggers stops as GBPJPY approaches first target for sellers
- US MBA mortgage applications w.e.20 September -10.1% vs -0.1% prior
- Watch House of Commons return live here
- UK PM Spokeswoman on the wires: Johnson sticking to his guns
- Roll up, roll up: House of Commons to return at bottom of the hour
- GBPUSD moving away from 200EMA on 1hour chart
- Iran say detained British tanker free to go, but faces charges
- Saudi Aramco restore oil production capacity
- Chart in focus: GBPJPY - JPY supported on risk aversion.
- Saudi Aramco asked banks to submit finance proposals
- Jeremy Corbyn declines to say when he would put forward a no-confidence vote
- European Indices follow Asia's drag lower at the open
- GBPUSD still supported by 100EMA on hourly
- European futures down in early European trading
- GBPUSD in focus: What's next post Supreme Court ruling
- ASB reaction to RBNZ keeping rates on hold
Markets
- Dax -1.17%
- UK FTSE -0.89%
- Euro Stoxx --1.24%
- Italian FTSE -1.63%
The session started with Asian equities having faced headwinds from the close of yesterday's US session where weak consumer confidence, impeachment concerns around President Trump, and President Trump speaking in a hard line tone about China and Iran dragged the Asian Indices down.
This souring of sentiment took hold at the start of the European open and continued through to the European lunchtime. The GBP was the largest mover on the session as further Brexit uncertainty weighed on sentiment. GBPJPY sellers stepped up to the plate and took the GBPJPY down through the session reaching the first target we discussed earlier in the session. GBPUSD also hit the 1.2400 support level.
The House of Commons has reconvened at 1130BST and we can expect Boris Johnson to address UK Parliament some time later in the session. That is one event to watch for potential GBP risk, as I have a hunch he might announce another attempt at prorogation if he can possibly find a way. He just wants to shut up shop now until October 31 and that will be the focus of his efforts.
EURUSD moved very little on the session staying near the 1.1000 level. Saudi oil supply was back up to speed 1 week earlier than scehduled, pressuring oil which is down to 56.20 at the time of typing and filling the gap. The USD was strongest currency today and the DXY was up +0.31% at the end of the session. It was a quiet session until 1100GMT when the GBP started moving in earnest.
