Breaking: GBP/USD soars above 1.29 as Brexit deal reached, but without DUP support

Yohay Elam FXStreet

Reporters in Brussels say that a Brexit deal has been agreed upon. One reporter announces "white smoke," and another says that Chief EU Negotiator Michel Barnier has briefed reporters and said that an agreement had been reached.

Prime Minister Borish Johnson tweeted:

We’ve got a great new deal that takes back control — now Parliament should get Brexit done on Saturday

European Commission President Jean-Claude Juncker praised the deal:

Where there is a will, there is a #deal - we have one! It’s a fair and balanced agreement for the EU and the UK and it is testament to our commitment to find solutions. I recommend that #EUCO endorses this deal.

The Northern Irish Democratic Unionist Party (DUP) has reportedly maintained its doubts and remains opposed to the agreement. Cable hit a high of 1.2989 before retreating closer to 1.29.

Some analysts are suggesting that Johnson is cornering the DUP to accept as hardliners in his party are on board. Parliament is set to convene for an extraordinary session on Saturday and it is unclear if MPs will back the accord.

GBP/USD is surging to new five-month highs above 1.29 and toward 1.30.

EUR/USD is also getting carried higher and crosses 1.11.

More Everything you need to know ahead of the critical Brexit summit

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

GBP/USD declines to near 1.3500 as US-Iran tensions rise

The GBP/USD pair declines to near 1.3500 during the early European trading hours on Wednesday. Ongoing tensions in the Middle East provide some support to a safe-haven currency such as the US Dollar against the British Pound. All eyes will be on the US August jobs report later on Friday.

EUR/USD falls to two-week low below 1.1600 on broad USD strength

EUR/USD remains under bearish pressure after closing in negative territory on Tuesday and trades at its lowest level in two weeks below 1.1600 on Wednesday. As tensions in the Middle East escalate further, the US Dollar gathers strength on risk-aversion and hawkish Fed repricing, forcing the pair to stay on the back foot. Later in the day, private sector employment data from the US will be watched closely by market participants.

Gold recovers above $4,300; upside seems capped as Fed bets support USD

Gold recovers early lost ground to a four-week low, and trades above $4,320 heading into the European session. A modest US Dollar pullback is seen as a key factor supporting the commodity, though any meaningful upside seems elusive amid hawkish US Federal Reserve expectations. The escalating Middle East conflict lifted crude oil prices to a fresh high since July 24, stoking inflation fears and reaffirming bets for a Fed rate hike in September.

WTI advances to mid-$90.00s, fresh high since July 24 amid escalating US-Iran tensions

West Texas Intermediate (WTI) – the benchmark US Crude Oil price – scales higher for the third straight day – also marking the fifth day of a positive move in the previous six – and climbs to a fresh high since July 24 during the Asian session on Wednesday.

BoC set to keep interest rates steady despite sticky inflation

The Bank of Canada is widely expected to keep its policy rate unchanged at 2.25% on Wednesday. This would be the seventh consecutive gathering with the central bank sitting on the fence. The BoC left its policy rate unchanged at 2.25% in July, as widely anticipated.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.