Pound tumbles as Johnson seeks December 12 Election

25 October, 2019

Sterling fell out of favour with investors on Thursday after U.K Prime Minister Boris Johnson called for a general election on December 12 to break the Brexit deadlock.

The British Pound tumbled close to 1% against the Dollar to $1.2790, its lowest level since October 17, before later rebounding back towards $1.2850 as of writing. By Law, Johnson will need the backing of two-thirds of parliament to hold an early election. Given how his calls for a general election have already been rejected twice, history could repeat itself for the third time.

This development will most likely compound to the growing drama and uncertainty revolving around Brexit with the Pound in the direct firing line. While speculation over the European Union approving a three-month Brexit extension could cushion downside losses, this is simply kicking the can further down the road.

Until proper clarity and direction are offered on Brexit, the GBPUSD is positioned to trend lower. In regards to the technical picture, sustained weakness below 1.3000 should open a path towards 1.2790 and 1.2700, respectively.

Commodity spotlight – Gold


Gold bulls made a late apperance on Thursday as prices punched above the $1500 level. Price action suggests that investors are still waiting for a fresh market-moving event or report that will impact global sentiment. Market players remain cautious over the Brexit developments while some are optimistic over the US-China “phase-one” trade deal. Until something fresh is brought into the picture, Gold is poised to remain range bound.

Looking at the technicals, the breakout above $1500 should iopen the doors towards $1515 and $1525, respectively.


Source   Presented by FXTM
Pound pressured by no deal scenario1 Jul, 2020  

The British Pound is under further pressure in today's trading session against its European counterpart after fears have once again risen, that the UK...

Sterling Under Pressure as GDP Weakens30 Jun, 2020  

Sterling was under pressure in early European trade Tuesday, with the release of the final gross domestic production figure suggesting that the contraction...

Big day ahead for pound19 Jun, 2020  

Analysts are unanimous in their predictions that the BOE will keep interest rates on hold at 0.1 percent, and are pretty certain on how much further quantative...


Sterling sets aside Brexit risks2 Jun, 2020  

GBPUSD is trading around its highest levels in a month, having briefly breached the 1.25 psychological level. Sterling, along with the rest of its G10 peers...

Pound jumps on Brexit breakthrough27 May, 2020  

The British Pound is trading steadily in today's trading session, after yesterday's jump following news of a further easing in lockdown measures surrounding...

Pound Heads for Worst Monthly Slide This Year26 May, 2020  

The pound is heading for this year's fourth monthly slide, and a lengthening list of risks is pointing to more turbulence in June. Sterling traders look set to face...


GBPUSD Daily: Negative sentiment prevailing25 May, 2020  

The GBPUSD currency pair, on the D1 time-frame, was in an uptrend until April 14 when a higher top was recorded at 1.26471. The bears found the price attractive...

Euro strong after Franco-German proposal21 May, 2020  

The euro is continuing to climb in today's trading session, following on from yesterday's gains after a proposal by France and Germany to fund grants...

Will the GBP be pressed by the PMI results?19 May, 2020  

Currently, the UK economy is being restarted, but there are a lot of setbacks in this process and a lot of people are confused and disoriented with what to...