Earlier in the news, Brexit party leader had stated that every senatorial seat numbering more than 600 would be keenly contested for by his party. The majority had predicted a drop-down of support for UK Prime Minister, Boris Johnson given Brexit extension.
However events took a twist, as in a recent news release, Nigel Farage revealed his party will hands off every seat won by the conservative party in the last election and rather consolidate to win against the anti-Brexit stance.
Many see this as a prop up in support for Boris Johnson in the upcoming December 12 elections.
Effect on Major Currencies
The bulls had tested the market for sterling as it held steady having topped its May peak in its EURO pairing standing at 85.62 pence. At the time of the report, it traded at 85.79 pence. It rose significantly over a percent versus the USD within a 12-hour range after the news release. Before the news, Sterling traded above $1.28.
The Pound: the cable experienced a bounce as it traded at $1.2896 after the news release. Market analysts presume that Brexit may take a complicated twist as the chances of a hung parliament is lessened. A drop was later recorded as it traded at $1.2858 at the time of the report.
Other Currencies: the news had a muted impact on other currencies. For the Dollar, This may be because the U.S. market was not open fully in respect to Veterans Day. The euro/dollar pair last traded at $1.1033, holding steady, while the dollar edged higher at 109.15 yen.
Also impacting the USD is the recent uncertainty hovering around the trade talks between the U.S. and China. Investors are treading cautious grounds as they await the U.S. President’s speech to the Economic Club in NY. Hong Kong’s increased unrest is believed to have undermined the greenback.
The Chinese yuan held steady at 7.004 versus the dollar, as investors await new reports and market updates with Hong Kong politics in mind.
The New Zealand dollar fell as investors speculated an interest rate cut by the apex bank showing the recent inflation figures presented. It dropped by 0.6% to $0.6326 after the apex’s bank move. It last traded at $0.6333.the Aussie was also caught in the web as it slid to a low of $0.6832.
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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.