Certainly, this was not the beginning of September that the Bulls wanted, especially after last week where positive sentiment dominated, leaving indices very close to new historical highs, despite the uncertainties surrounding the trade war, the slowdown in the world economy and Brexit. Today these ghosts have become a little more real, both in the economic data component, with the confirmation of a contraction in US manufacturing activity, but also in Brexit’s political arena, with the UK Parliament prepared to vote on a bill that postpone the deadline until January 31 and after the Conservative party lost the majority in the House of Commons.
The political instability pushed the British Pound to 34-year lows against the US dollar as the GBP / USD pair traded below $ 1.20 earlier in the day, rebounding in the afternoon to close to $ 1.21. Whatever the outcome of today’s vote and its concrete consequences, it is almost certain that the Pound will continue to have slightly higher volatility, so some caution is advised.
