Pound goes on rollercoaster ride after Brexit draft deal

Pound goes on rollercoaster ride after Brexit draft deal

Britain will leave the European Union on October 31 if no Brexit deal is reached with the bloc, housing minister Robert Jenrick said on Thursday.

The leadership of Northern Ireland's Democratic Unionist Party said it did not support proposed solutions to handling Irish border checks, a major sticking point in negotiations over the terms of Britain's departure from the bloc. Gold Capped by Brexit Optimism Hopes over a Brexit deal are helping to put a lid on gold prices on Friday.

Sterling already jumped 5% this month to around $1.29 and now it's pinned to that marker as traders wait to see if Prime Minister Boris Johnson can convince sceptics in the House of Commons to approve the divorce deal he sealed this week.

Official data meanwhile showed Chinese imports and exports fell more than forecast in September, as United States tariffs and cooling demand at home and overseas hit trade in the world's second largest economy. On the other hand, European Union officials appear cautiously optimistic that a deal can be drafted and approved by Thursday.

Hong Kong was off 0.5 percent amid concern over the possibility of more violent protests over the weekend.

The Pound Sterling Canadian Dollar (GBP/CAD) exchange rate slumped and the pairing is now trading around CA$1.7035.

Boris Johnson, the Prime Minister of the United Kingdom, will have to get majority votes in the Parliament to get the Brexit draft passed.

MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.24% while the FTSEurofirst 300 index .FTEU3 of leading European shares closed down 0.38%.

Opposition Labour Party leader Jeremy Corbyn has also said he could not support the deal. Tougher trading conditions in the US and China, and ongoing unrest in the Hong Kong, weighed on the company.

Wall Street stocks dipped in early trading as solid earnings from Coca-Cola and American Express were offset by a weak Chinese economic report and uncertainty over Brexit.

China is expected to post its weakest economic growth in at least 27-1/2 years later in the session, raising pressure on Beijing to roll out more stimulus to counter the effects of the costly trade war.

U.S. Treasury Secretary Steven Mnuchin said on Wednesday that U.S. and Chinese trade negotiators were working on nailing down a Phase 1 trade deal text for their presidents to sign next month.

Euro zone bond yields were also nudging up with German Bund yields holding at -0.40 per cent, the highest since early August.

Both sides said they were close to finding a basis for a treaty to ensure Britain heads for a managed withdrawal from the European bloc it has been part of for almost half a century. Strong resistance can be seen at 109.00 (Higher BB), an upside break can trigger rise towards 109.26 (Aug 1st high).On the downside, immediate support is seen at 108.19 (9 DMA), a break below could take the pair towards 107.76 (21 DMA).

The figures weighed heavily on the oil market, with crude futures slumping around 2%. The yield on benchmark 10-year Treasury notes edged up though to 1.764%, compared with a US close of 1.755% on Thursday.

Three factors are now driving the U.S. Dollar lower: Optimism over Brexit, increasing chances of a Fed rate cut, and the lifting of hedges due to the possibility of a partial trade deal between the United States and China.

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