UK's Labour vows to bring down PM Johnson and lead temporary government – Reuters

Anil Panchal FXStreet

Early Thursday morning in Asia, Reuters came out with a news report quoting the UK’s opposition Labour Party Leader Jeremy Corbyn’s letter to party leaders and other senior politicians. It was also mentioned in the report that the opposition has vowed to call a vote of no-confidence in Boris Johnson’s government as soon as it believes it can win it and seeks to form a temporary government under leader Jeremy Corbyn to delay Brexit.

Key quotes

If Johnson loses no-confidence vote, Corbyn would seek to form a strictly time-limited temporary government.
Aims of temporary government would be to call a general election and extend Brexit departure date.
In an election Labour would campaign for second referendum on terms of leaving EU, including an option to remain.
It calls on other party leaders and senior cross party lawmakers to discuss his proposal.

FX implication

Although it is a much-known fact that the Labour will be the first to push for a no-confidence vote when the members of the Parliaments (MPs) return from their summer vacations, such headlines exert downside pressure on the British Pound (GBP).

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD gains traction to near 1.1800 as tariff uncertainty weighs on US Dollar

The EUR/USD pair holds positive ground around 1.1795 during the early Asian session on Tuesday. The US Dollar weakens against the Euro amid US tariff uncertainty. The release of the US January Producer Price Index report will be in the spotlight later on Friday.

GBP/USD treads water near 1.3500 as BoE-Fed divergence debate stalls

GBP/USD spent Monday spinning in place as market participants await a fresh catalyst to break the pair out of its recent range. The BoE's February hold came with a surprisingly dovish 5-4 split, and UK Consumer Price Index data last week showed inflation easing to 3.0%, reinforcing the case for earlier rate cuts, with most economists now looking to April or March for the next move.

Gold falls below $5,200 amid pullback from monthly highs

Gold price is back under the $5,200 level in the Asian session on Tuesday, pulling back from the highest level in four weeks reached at $5,250 earlier on. The Gold price upsurge was fuelled by heightened geopolitical tensions and global trade uncertainty following US tariff decisions. However, an improvement in risk sentiment and a fresh US Dollar upswing trigger a corrective decline in the yellow metal.

Solana DeFi platform Step Finance to close operations following treasury hack

The Solana based decentralized finance platform Step Finance announced it will end all operations effective immediately following a breach that drained its treasury.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.