Brexit: UK PM Johnson to meet with the new president of the European Commission on Wed

Ross J Burland FXStreet

British Prime Minister, Boris Johnson, is due to meet with the new president of the European Commission Ursula Von der Leyen in London on Wednesday for the first post-election Brexit trade talks. Ursula von der Leyen will meet the Prime Minister on Wednesday in Number 10 to discuss the opening positions of the EU and the UK in the upcoming negotiations.

The visit comes ahead of Britain’s expected exit from the EU on January 31, and will provide the first opportunity for Johnson to outline the UK’s opening position in talks, which are set to officially begin in February or March.

FX implications

The pound is set to move lower should negotiations point to a hard Brexit scenario. There could be volatility on each and every related headline at the extreme depending on sentiment.

GBP/USD Price Analysis: Pound pressuring the 1.3172 resistance vs. US dollar

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD strengthens to near 1.3400 as UK political risk fades

The GBP/USD pair gathers strength near 1.3395 during the Asian trading hours on Thursday, bolstered by fading domestic political uncertainty. However, hawkish minutes from the Federal Reserve and renewed tensions between the US and Iran might support the US Dollar and cap the upside for the major pair.

EUR/USD sticks to positive bias above 1.1400 vs USD; Mideast tensions cap gains

The EUR/USD pair attracts some buyers for the second straight day, though it lacks follow-through and remains confined within the previous day's range during the Asian session on Thursday. Spot prices currently trade around the 1.1420 area, up less than 0.10% for the day, and remain at the mercy of the US Dollar price dynamics.

Gold keeps the red despite softer USD; stays below $4,100

Gold trades with a mild negative bias in the Asian session on Thursday, fading the overnight bounce from $4,020, or a one-week low. Minutes of the June FOMC meeting showed an evenly divided debate over the monetary policy outlook and failed to impress the US Dollar bulls, which is supporting Gold. However, fresh US-Iran tensions drive Oil higher, reviving inflation concerns and limiting the USD's downside and the bullion's rebound.

Bitcoin has yet to escape bearish conditions despite recent recovery

In a report on Wednesday, Glassnode stated that Bitcoin has continued trading beneath both the True Market Mean of $76,600 and the short-term holders cost basis of $72,200. "Until these levels are reclaimed, the market remains in deep value territory and structurally vulnerable to any external negative catalyst," Glassnode wrote.

2.50%: Why the Kiwi's first hike in three years is a wager on a number nobody can see

The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 25 basis points to 2.50% at 02:00 GMT on Wednesday, its first hike in three years and the moment the bank that cut deeper than any G10 peer last cycle turned to face the other way.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.