Fite for Brexit: getting ready for hot September

30 Agu 2019

Be concern working with the pound. Boris Johnson's decision to shut down parliament for five weeks in order ... controversial plan to suspend the UK's parliament for five weeks. The Queen has approved an order to prorogue the UK Parliament. Boris Johnson seriously set his sights on leaving without a deal. Of course, there is a chance that this is just his attempt to strengthen his position in negotiations with the EU, well knowing Johnson’s temperament, we no longer exclude the most radical scenarios.

The first week of September may be decisive for Brexit: time the opposition has to pass a law that does not allow an exit without a deal. Among other options - a vote of no confidence in the government, the dissolution of the Parliament and early elections. So, it will not be boring, pound volatility in September are guaranteed. For intraday trading, this is an opportunity to make money trading with pound pairs. So we will continue to monitor the development of events and will keep our readers informed of what is happening.

Yesterday's US GDP data came out in line with forecasts: + 2.0% y / y. This means that the data has been revised downward. Statistics on the US labor market will be published, in particular, data on the NFP will be published next weak, a serious driver for a powerful dollar movement is not expected.

Extremely weak figures were published on consumer inflation in Germany. In general, the concerns about one of the best Eurozone economy raises. Based on this, yesterday’s comments by the future head of the ECB, Michel Lagarde, that the ECB has tools to deal with the recession and should be prepared to use them if it is necessary.

Against this background, we will continue to recommend avoiding buying euros against anything. But sales of it still seems to be a good trading idea.

As for the trade war. The markets did not understand whether Trump was called from China or not. New tariffs for goods from China come into force on Monday. And this means that the trade war is not over. However, in September, the Chinese delegation should arrive in Washington so the chance to stop still exists. We will continue to look for points for buying gold and the Japanese yen on the intraday basis. Moreover, safe-haven assets today are something that worth to buy.