Brexit vote round two

January 29, 2019

A big night coming up for the UK as the second Brexit parliamentary vote is conducted overnight.

The EURUSD opened the day at $1.13989 and remained rather flat early, dipping to a low of $1.13884 mid-session. The pair climbed off those lows, peaking at $1.14431 late in the day. It is not far off those highs, currently trading at $1.14273. The GBPUSD weakened overnight as the country prepared for another Brexit vote. The pair opened at $1.31827 and bumped up to an opening hour high of $1.32108. The pound remained near those highs in early trading before the decline set in and hitting a low of $1.31355 late in the day. It is not far off those lows and is currently trading at$1.31513.

The Dow fell overnight due to some weaker-than-expected earnings data from some of the country’s largest companies. The index opened at 24,697.94 and bumped up to an opening-hour high of 24,741.05. The Dow began a steady fall in early and mid-session trading, then fell sharply late in the day, hitting a low of 24,315.78. It bounced off those lows and is currently trading at 24,461.60. The Dax remained rather steady during trading yesterday as it was able to avoid being dragged down by the Dow. The German index opened at 11,225.31 and climbed to an early high of 11,276.53. It slid from those highs and bottomed-out at 11.178.03 late in the day. A late climb saw the Dax close at 11,242.03.

The day ahead shapes up as another significant one for markets as the UK parliament votes again on the latest Brexit deal put forward by the UK. Whatever the result, you can bet that the gloves will come off and the PM and opposition leader will go at it on the floor of parliament. One of the criticisms of this new plan is that it differs very little from the last one. We will see if the PM has done enough to secure the vote.

Data released today includes:

Australia – NAB Business Confidence

Europe – Swiss Trade Balance, Spanish Unemployment Rate

US – CB Consumer Confidence, S&P/CS Composite-20 HPI


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