No-deal Brexit fears impact Pound

07 Oct 2019

German Factory Orders publications pushed the EUR/USD pair to be traded around 1.10. In addition, U.S.-Sino trade relations continue to have an affect on the market sentiment. 

A disappointing monthly drop of 0.6% for the German Factory Orders, meaning an annual 6.7% fall in August saw the EUR/USD pair to fall in the range of 1.0980 with the 21-day MA being at 1.0996. The Deutsche Bundesbank’s publications included shipments, inventories, and new and unfilled orders. The Eurozone GDP was not affected by the Factory orders. 

The Cable opened the Monday session being traded close to 1.23 as fears of a no-deal Brexit continues to grow. EU leaders stated that they are unsure whether an agreement will be reached by the EU Summit. British Prime Minister Boris Johnson’s previous proposals have been insufficient for the EU. On Friday, the European parliament president did not approve of Johnson’s plans, which in turn had an impact on the British Pound. The drop in value for the Pound came alone with the weakening U.S. Dollar, as a result of predictions that the Fed will cut interest rates once again during the next monetary policy meeting at the end of October. 

Furthermore, the Monday session saw the yen gaining, being last traded at 106.82. The yuan failed to strengthen, falling by around 0.20% in offshore trade at around 7.1285 against the dollar.