Trump said on Twitter today that the US will delay a tariff increase of USD$250 billion on Chinese imports that was to take effect 1 October. Long AUD/JPY?
GBP/USD rose to a two-month high after European Commission Juncker said in an interview with Sky News that a Brexit deal could be reached by 31 October which is the deadline currently scheduled for the UK to leave the European Union.
As we can see from the past few months, PM Boris Johnson’s leadership has not shown to be enough to bring a deal to the table and to get his MPs to vote for it. The EU, on the other hand, does not want “blood” on their hands so to speak. The EU does not want to be blamed for a no-deal Brexit and they are seeing signs of that sentiment.
Furthermore, President Juncker said that he does not have an “erotic relation” to the backstop. This can be understood as the EU being willing to accept alternatives which were previously rejected. Though the market is still doubtful on a clear deal which makes both parties happy, we believe that this could be one step in the Brexit negotiations.
Fullerton Markets Research Team
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