- Yesterday was dominated by UK Prime Minister Boris Johnson’s highly controversial decision to prorogue Parliament. His move to effectively suspend parliament for a 5-week period during September and October has been met with a furious backlash from MP’s and members of the public alike, with protests springing up in cities across the UK.
- The Prime Minister and a number of his cabinet colleagues have insisted the suspension is simply for the Government to put forward a fresh agenda and to hold a Queen’s speech announcing the Government’s future plans. However opposition MP’s and some of his own Conservative MP’s in fact, have voiced their outrage at what they see as a clear attempt to stifle Parliaments ability to debate Brexit with the October 31st deadline looming large.
- Prior to the news the Pound was still trading near one-month highs of 1.2300 and 1.1080 against the US Dollar and Euro respectively.
- The Pound fell sharply as the news broke and by the close of play was trading down -0.47% at 1.2222 against the US Dollar, and down -0.40% at 1.1030 against the Euro.
- Following Boris Johnson’s decision to prorogue Parliament an online petition in the UK surpassed 1 million signatures within a matter of hours. Any petition that achieves greater than 100,000 has to be considered for debate in Parliament.
- A number of US Federal Reserve members have been speaking overnight and this morning. Kaplan has said he is open to a rate cut at the next meeting, whilst Barkin said he is undecided as consumers still appear strong although business confidence is suffering from the trade dispute with China.
- New Zealand ANZ Business Confidence -52.3 (-44.3 Previous)
- Australia Private Capital Expenditure q/q -0.5% (0.4% Exp)
- Japan Consumer Confidence 37.1 (37.5 Exp)
- French Prelim GDP q/q 0.3% (0.2% Exp)
- Spanish Flash CPI y/y 0.3% (0.4% Exp)
- German Unemployment Change 4K as expected
- All key European data has already been released this morning.
- This afternoon US GDP will be the headline print due at 1.30pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|13.30||USD||Prelim GDP q/q||2.0%||2.1%|
|13.30||USD||Goods Trade Balance||-74.0Bn||-74.2Bn|
|15.00||USD||Pending Home Sales m/m||0.1%||2.8%|