03.09.2019: UK lawmakers oppose PM, pound slides (EUR, USD, GBP, GOLD)


The pound is testing yearly lows and declines significantly. The short-term fundamental situation does not support the quotes. The pound holds the euro against the slide. The euro is receding for the seventh session in a row. At some moment, the pair quotes have dropped as low as 1,0940. According to the latest economic data, Germany and other European countries are suffering from trade wars. Demand for the European currency is declining, and the bearish trend prevails. High expectations for lowering interest rate by 20 basis points during the European Central Bank meeting in September put even more pressure on the euro. The euro/dollar bulls are trying to push the pair’s price up from its lows amid the rising euro/pound pair. The sterling is falling lower amid the rising uncertainty around Brexit. Traders are waiting for the outcome of the conflict between Boris Johnson and the Parliament. The question is whether the lawmakers manage to delay Brexit for another three months. The upcoming political events in Great Britain may seriously affect the pound. It is already trading against the dollar below the mark of 1.20. The growing risks of snap parliamentary elections in the UK as well as pessimistic statistical data both weaken the sterling. Gold has started a long-term uptrend due to the rising global tensions. The price has advanced in the European session following a slight decrease during the Asian trade. The gold is trading at $1,540 per ounce. Traders prefer to play safe and choose gold as the main safe-haven asset. Since the beginning of the year, it has already gained 20%. Ongoing trade wars drive the demand for gold. Earlier, Donald Trump promised to revive talks on a trade deal with China. However, the conflict has taken a different turn.

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