Forex Today: GBP/USD on the edge as parliament braces for Brexit battle, EUR/USD at new lows, and Bitcoin recovers
|Here is what you need to know on Tuesday, September 3:
- GBP/USD is trading close to the 2019-low of 1.2015 ahead of a critical day in the UK parliament. The opposition will table an emergency motion to kick off a process of rapid legislation meant to force the government not to leave without a deal. If it passes, the government will have to ask for a 3-month extension to January 31. The "rebel alliance" seems to have enough support. Prime minister Boris Johnson reiterated that he will not ask for an extension of Brexit beyond October 31, hinting that he will be forced to call for an election – probably for October 14. The showdown in parliament will grab headlines.
- EUR/USD is grinding its way to new lows under 1.0950 – the lowest since 2017. The US dollar is strengthening across the board. The European Central Bank's September 12 decision is eyed.
- The US and China are unable to agree on a date to hold high-level trade talks. The world's largest economies slapped tariffs on each other over the weekend.
- The Reserve Bank fo Australia has left the interest rate unchanged at 1% as expected and left the door wide open to cutting rates later. AUD/USD trades close to 0.67. Earlier, Australian retail sales dropped by 0.1%.
- US ISM Manufacturing PMI stands out in the economic calendar with a score just above 50 expected. The data serves as a hint towards Friday's Non-Farm Payrolls.
- US and Canadian traders return from their holidays and trading volume is set to rise.
- Cryptocurrencies have recovered with Bitcoin trading above $10,000 once again. Gold and oil are steady.
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