After a busy weekend, traders expect a volatile week due to Brexit updates and China news. Here is your 21 October Fundamental updates you need to follow.
21 October 2019, AtoZMarkets – This weekend has been volatile behind the scenes. Of course, Trump –Turkey discussions, Turkey – Turkish Union Meeting, Brexit updates were the main fundamentals we all followed.
Here are the list of the events you need to follow this Monday:
1- Brexit update
As we are getting closer to the 31st of October, Brexit is becoming a hot topic. On Saturday, the UK Parliament passed yet another amendment as many analysts feared. The weekend amendment forces the British PM Boris Johnson to ask for an extension.
Boris Johnson came up with a deal last week and was hoping to go for an exit but the new amendment made it impossible. Thus, he has asked for a new Brexit extension late Saturday. Donald Tusk confirmed the receipt of the letter and will pass it to the EU27.
Despite this push back, British PM, Johnson could still pass the Withdrawal Bill this week. If this happens, we could see the UK exiting the European Union as early as October the 31st or soon after
Either way, we will see GBP volatility during the week. We are expecting gap on weekly opening on major GBP pairs,
2- US Quid Pro Quo vs. Statistics
Trump administration is anxious with the latest press meetup of the White House Chief of Staff, Mulvaney. Some of the reporters interpreted his comments as Trump had Quid Pro Quo during his call with the Ukrainian President. However, Mulvaney insists he did not admit quid pro quo.
Either way, President Trump and his administration will be under fire this week.
While the earnings report came negative, the overall statistics show strong US economy. Thus, markets ignored the recession fears last week.
3- China data and Crude prices
On Monday at 1:40 am GMT, we will get the PBoC Interest Rate Decision. Previously it was 4.2%. If we add the worse than expected Q3 Chinese GDP we could possibly expect bigger impact on commodities.
The crude oil market had its own bit of sourness from the Chinese data already last week.