UK Prime Minister Boris Johnson lost his sixth vote in Parliament after his second attempt to call an early election failed to satisfy the require majority. He final vote was 293-46 in favor of an early election, but the opposition Labour party abstained and Speaker John Bercow declared that the majority didn’t meet the requirements of the Fixed Term Parliaments Act. PM Johnson stated “I earlier urged the house to trust the people. But once again, the opposition think they know better.” A two-third majority is required in order to call for early elections.
The House of Commons and the House of Lords will now be suspended for the next five weeks after a notion to extend the usual recess for part conference was extended by two weeks. Johnson expelled 21 Tory rebels who voted with opposition parties against their own party in order to take a no deal Brexit off the table. Plaid Cymru's Liz Saville-Roberts added “The vote for a general election would play into Boris Johnson’s hands. It would allow him to ignore the legislation that is presently going through the House of Lords, likely to have royal assent today. It would allow him to ignore that. It would give him the opportunity to ignore the law.”
Johnson’s response to a reported asking if he could ensure the public that he won’t ask the EU for another delay was “I'd rather be dead than ask for a delay”. While a law was passed by Parliament which states the Johnson has to ask for a delay until January 31st 2019 if no deal will pass Parliament by October 16th 2019, it is unclear which steps Johnson and his allies will take. One cabinet minister, Amber Rudd, resigned in protest of how the current government is handling Brexit and so did Johnson’s brother.
Johnson singled out opposition leader Corbyn for not backing an early election. He told Parliament that “Dither, delay, procrastination and confusion that has become a hallmark of the opposition. The Surrender Act has now passed. It has gained Royal Assent. He has done his level best to wreck this country’s chances of a successful negotiation. By his own logic and his own argument, he must now back an election.” The Labour Party claims that it cannot trust PM Johnson until a no deal Brexit is legally ruled out. Parliament will now return on October 14th 2019, juts three days before the crucial EU summit.
Labour’s opposition to an early election remains and Johnson added “If you really want to delay Brexit beyond October the 31st, which is what you seem to want to do, then vote for an election and let the people decide if they want a delay or not. And if you refuse to do that tonight, I will go to Brussels and negotiate our departure, hopefully with a deal, but without one if necessary. I will not ask for another delay.” With Parliament on prorogation, MPs will now only have two days of official discussions before Johnson will attend the EU summit where sources claim he will push for a deal.
Forex Profit Set-Up #1; Buy GBPZAR - D1 Time-Frame
The UK economy has accelerated at the end of the second-quarter with the service sector clocking in at its fastest growth rate of 2019. Against a backdrop of a South African economy which is facing a deepening economic crisis, the GBPZAR is expected to resume its rally. Price action retreated from the lower band of its horizontal resistance area, enforced by its primary descending resistance level, and has now reached its next horizontal support level supported by its primary ascending support level. A move into its horizontal resistance area is now anticipated and buying any dips from current levels remains the favored trading approach.
The CCI already moved out of extreme oversold conditions and the rise in bullish momentum is likely to carry this technical indicator above the 0 mark from where more buy orders are favored to enter the market. Open your PaxForex Trading Account today and join one of the fastest growing communities of profitable forex traders!
Forex Profit Set-Up #2; Sell EURGBP - W1 Time-Frame
Following a price spike into its horizontal resistance area, the EURGBP quickly reversed direction and the past five trading sessions saw a surge in bearish momentum. This was accelerated after the latest UK economic data smoothed fears for a UK recession. This currency pair is now expected to complete a breakdown below its horizontal support level and extend its sell-off until it will reach the upper band of its next horizontal support area which is being approached by its primary ascending support level. Forex traders are advised to sell any rallies in the EURGBP from current levels.
The CCI completed a breakdown from extreme overbought territory, which was preceded by a negative divergence. Momentum sufficed for a drop below 0 for a bearish momentum change and more downside in anticipated. Subscribe to the PaxForex Daily Fundamental Analysis and allow our expert analysts to guide to over 5,000 pips in monthly profits!
Forex Profit Set-Up #3; Buy Gold - MN Time-Frame
Gold offers forex traders an excellent hedge as the global economy is inching closer to a recession, the raging trade war between the US and China, the trade spat between Japan and North Korea, central banks poised to ease monetary policy further and Brexit uncertainty. Price action has taken a breather over the past few sessions and may slide further which is creating an excellent buying opportunity. Bullish momentum is favored to increase and result in a double breakout, above its primary as well as secondary descending resistance level, which will clear a rally into its next horizontal resistance area. Forex traders are recommended to buy any dips in gold down to its next horizontal support level.
The CCI remains in extreme overbought conditions, but has recorded new highs together with price action. The current sell-off is likely to take this momentum indicator below 100 from where the next surge is anticipated. Follow the PaxForex Daily Forex Technical Analysis and simply copy the recommended trades into your own forex portfolio!
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