Daily market commentary: The Pound drops for the third consecutive day


Daily Market News

ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for September 27, 2019. See details below:


FOREX

The Pound is falling for the third consecutive day, after more Brexit related tension in parliament and still no clarity being cast over what will be the outcome of the process. The negative effect of Brexit uncertainty on Sterling was compounded after a declaration by one the Bank of England’s leading policy makers. Michael Saunders, that even if a no-deal Brexit is avoided, the BoE may still be looking at cutting rates. This came as a shock – Saunders is known as a hawk, but his stance here was very dovish, resulting in 0.4% immediate losses for Sterling against the US Dollar.

It appears there is more downside risk ahead for the Pound, which will be driven by Brexit uncertainty, but also by a more dovish stance from the central bank.

Ricardo Evangelista – Senior Analyst, ActivTrades

GOLD

The strength of the greenback is pulling back the gold price, which has fallen to a low of $1,495, before trying to rebound to $1,500. In a scenario of strong dollar and moderate risk on, bullion is not finding any impulse for recovering, even if price is still in the lateral trading range seen in the last few weeks.

Carlo Alberto De Casa – Chief analyst, ActivTrades

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Daily market commentary: The Pound drops for the third consecutive day

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