The U.S. dollar gains bullish momentum on the rejection of Brexit Deal via Parliament Vote. In voting, the government deal for Brexit was approved, but the schedule was rejected. In response to which PM Boris Johnson said that the first consequence of this action by legislation would be No-Deal Brexit.
After the threats of no-deal Brexit from PM Boris Johnson, Donald Tusk, the President of the European Council, said that E.U. was considering granting an extension to the U.K. after the letter from Johnson was received.
Johnson then claimed that he would pause the legislation and go for a No-Deal Brexit on the said deadline of October 31. Let’s see how Boris Johnson plays now.
Economic Calendar – Parliament Brexit Vote Rejected!
BTC/USD – Daily Analysis
The leading cryptocurrency, Bitcoin, fell sharply below 8,000 level after the total crypto market cap declined to escalate beyond the $220.0B resistance and sank lately.
The BTC/USD price plunged over 3%, and it is presently trading beneath the $8,000 support zone. Alongside, the Litecoin (LTC) price is dropping nearly 4%, and it is advancing to the $52.00 support level.
The Trump government began to discourage the bitcoin bubble of 2017 by supporting the initiation of futures products, a retired executive announced on Monday. With this, the threats of the bitcoin bubble burst loom around the corner, and consequently, we noticed sell-off from a certain amount of traders.
BTC/USD – Daily Technical Levels
Pivot Point 7,950.89
BTC/USD – Daily Forecast
The BTC/USD has violated the 8120 marks, the level which was extending solid support to the BTC/USD. The Bitcoin has also filled the weekend gap, and now it’s trading at 7977. The immediate support prevails at 7885 levels. The violation of 8120 opens further room for selling until a strong level of 7750.
EUR/USD – Resistance Become Support
The EUR/USD opened at 1.11487 and has placed a high of 1.11568 and low of 1.11176 until now. EUR/USD is trading at 1.11253 as of writing and has shown a Bearish trend for Tuesday.
The EUR/USD hit fresh daily low points in response to the rejection of Boris Johnson’s timetable by the U.K. Parliament after the second vote on Tuesday. In voting, the government deal for Brexit was approved, but the schedule was rejected. In response to which PM Boris Johnson said that the first consequence of this action by legislation would be No-Deal Brexit.
After the threats of no-deal Brexit from PM Boris Johnson, Donald Tusk, the President of the European Council, said that E.U. was considering granting an extension to the U.K. after the letter from Johnson was received. He also noted that no-deal Brexit would never be a decision of the E.U.
In response to this comment from Tusk, European Commission President Jean Claude Juncker moaned that Brexit had been a waste of time and energy throughout his tenure. He said that in his five years of office, the U.K. had been dominant discussion, and the process has caused him pain because, in that time, he could have focused on making the lives of citizens better instead of dealing with this waste of time – Brexit.
Due to a lack of macroeconomic releases from the European side, the movement of this pair was left with the Brexit news on Tuesday.
EUR/USD – Daily Technical Levels
Pivot Point 1.1156
EUR/USD – Daily Forecast
The EUR/USD is now facing double bottom support at 1.1115 with along with resistance at 1.1140. Failure of the violation of the 1.1115 level can drive buying in the EUR/USD. Below 1.1115, the EUR/USD will have further selling bias until the 1.1085 area. Whereas, we can expect EUR/USD to go after 1.1160 above 1.1115.
GBP/USD – Sterling On Fire Amid Brexit Updates
The GBP/USD opened at 1.29581 and has placed a high of 1.30006 and low of 1.28618 until now. GBP/USD is trading at 1.28817 as of writing and has shown a Bearish trend for Tuesday.
The hopes of U.K. Prime Minister Boris Johnson of getting his Brexit deal fast-tracked through the U.K. Parliament were blown after the defeat of the government’s timetable for Brexit in a voting session on Tuesday although the government won the first reading of votes on the deal legislation to progress.
The first reading votes were in favor of Boris Johnson’s proposed Brexit deal, and second reading votes were against the timetable given by Johnson to get the deal through House of Commons before the end of Thursday.
After the rejection of the timetable by the U.K. Parliament, Johnson gave threats to abandon the bill even if E.U. granted an extension and said he would instead push for the general election. U.K. legislators argued that three days were not enough to examine the deal. Johnson then claimed that he would pause the legislation and go for a No-Deal Brexit on the said deadline of October 31.
The rejection of the timetable of Johnson made it almost impossible for the U.K. to leave on the said deadline; hence, GBP/USD dropped immediately by 0.5% on Tuesday.
On the macroeconomic data front, the Public Sector Net Borrowing for September from the United Kingdom came in as 8.7B at 13:30 GMT. And the CBI Industrial Order Expectations fell to -37 against the expectations of -25 at 15:00 GMT and weighed on Pound. The weak macroeconomic data from the United Kingdom added in the downward trend of GBP/USD on Tuesday.
GBP/USD – Daily Technical Levels
Pivot Point 1.2955
GBP/USD – Daily Forecast
On the 4 hour timeframe, the GBP/USD has formed a bearish engulfing pattern, which is suggesting solid chances of bearish trend continuation. The Cable has come out of the bullish channel, which was extending support at 1.2930. For now, the candles have closed outside of the bullish channel, and it’s suggesting odds of the further bearish trend in the GBP/USD. On the lower side, the immediate support stays at 1.2795, while resistance stays at 1.2925.
All the best for today.