US President Donald Trump may finally get his wish for a weaker currency in 2020. Since October, the US Dollar has been under pressure, and the trend is anticipated to accelerate into 2020. Trump has criticized his central bank for not supporting the economy to the tune of global counterparts. He urged the Federal Reserve to slash interest rates into negative territory, following the EU, Switzerland, Japan, and Denmark.

The British currency retains the gained advantage at the trading on Tuesday, having previously reached a six-month high against the euro and strengthened by 1% against the USD on the eve, amid weakening fears about the formation of a “weak parliament” as a result of parliamentary elections in the UK.  

The British currency declined slightly in anticipation of a meeting of the national regulator, which will be held later today, and is currently trading at $ 1.2846, very close to the lows of October 29.  

The dollar is trading without clear dynamics on Thursday amid growing doubts about the US-China trade deal, while the pound fell in price on pending news about the Brexit terms agreement.  

In less than 48 hours the EU summit will start and both sides are racing to put a deal together. Boris Johnson, the British PM, wants to have a deal by the end of the summit which he can take back to Parliament. He has urged MPs to back any deal he will bring back from Brussels so that the UK can finally deliver on the Brexit referendum and leave on October 31st 2019. Optimism is now on the rise and after the British Pound reached a three-month high it started to pull back as time is running out.

Earlier this morning the UK Supreme Court ruled that PM Johnson’s suspension of Parliament was unlawful. According to the 11 justices, PM Johnson gave Queen Elizabeth II unlawful advice to suspend Parliament for the Queens Speech. This hindered elected officials to perform their democratic duty, as of the ruling. PM Johnson responded after the verdict that “Obviously this is a verdict that we will respect and we respect the judicial process. I have to say that I strongly disagree with what the justices have found.

Daniel Chambers, head of trading at Sequoia Capital Fund Management, stopped trading nearly $ 200 million (£ 160 million) in pounds from his systematic foreign exchange portfolio during the year due to Brexit risks. Other major investors followed his example.  

The British pound rebounded from lows on Wednesday after the parliamentary debate, which opened the door for another delay with Brexit, while the dollar fell after weak manufacturing data fueled rates to aggressively weaken US monetary policy.  

Prime Minister Boris Johnson is facing a key vote this evening in Parliament as rebels from within his own party are expected to join ranks with the opposition in order to thwart a no deal Brexit. The UK is now scheduled to leave on October 31st 2019 and PM Johnson stated that he will not ask for an extension. He vowed to deliver Brexit to the people and honor the results of the 2016 referendum where 52% voted to leave the EU. Most recent polls suggest that the number rose to 56% after Johnson took over as prime minister only a few weeks ago.

The British pound has a little recouped its losses and held slightly above recent lows, although the currency remains very vulnerable amid investors' fears that the UK is increasingly moving towards an ineffective Brexit. At the beginning of the week, British media reported that Brussels diplomats, informed after a meeting with the chief European envoy of British Prime Minister Boris Johnson, stated unequivocally that Johnson did not intend to make concessions to the European bloc.

After winning the leadership race with a 2-1 majority, Boris Johnson became the new Prime Minister of the UK and which now has its first Brexit cabinet after the referendum. The extended Brexit data stands at October 31st 2019, but the EU stated it is willing to extend again. This is something Prime Minister Johnson has ruled out as he promised to deliver on Brexit and move the country forward. He has less than 100 days to deliver. With less than 24 hours in his new job, he wasted no time to reshuffle the cabinet and install pro-Brexit ministers during his purge.

On Tuesday, the British pound has been falling for the third day in a row, discouraged by a stronger dollar and fears that the new prime minister, whose name will become known later, will withdraw Britain from the European Union without a trade deal with the bloc. The result of the Conservative Party election will be announced just after 10.00 GMT, with Brexiteer Boris Johnson widely expected to have beaten foreign minister Jeremy Hunt. The winner will become prime minister on Wednesday.

On Wednesday, the British pound continued to decline, trading at a new 27-month low against the US dollar, below the 1.24 USD mark. Markets continue to react negatively to the increased likelihood of a British exit from the European Union without any treaty. According to forecasts, the main skeptic and supporter of tough Brexit, Boris Johnson, will be elected next week as the leader of the Conservative Party and, therefore, will become the next prime minister.

As the EU is scheduled to vote for Ursula von der Leyen as the next President of the European Commission and the UK is on track to announce its next Prime Minister, tensions during the latest round of Brexit negotiations have risen. According to sources, talks between EU Chief Negotiator Michel Barnier and UK Brexit Secretary Stephen Barclay have been the most hostile since 2016. The EU is preparing for a rise in tension as the bloc prepares for the Premiership of Boris Johnson who vowed to deliver on Brexit by October 31st 2019 and is prepared for a WTO type deal.

UK Prime Minister Theresa May has been resilient in her premiership and was able to hold on so far, but it was only a matter of time until she would travel to the end of her road. Today she is facing another showdown in Parliament after cross-party talks to reach a Brexit deal compromise with the Labour Party broke down. May will now try to win over rebel Labour MP’s in order to have enough voted to pass her much hated Brexit deal after it was voted down three times before.

UK Prime Minister Theresa May scored a minor political victory as a panel of important Tory MP’s decided to keep the rules on a leadership challenge unchanged. As more members from her own party seek to replace her, especially since she reached out to Marxist opposition leader Jeremy Corbyn, May is trying to see through a Brexit compromise which can be passed by Parliament. Her hated Brexit deal which she negotiated with the EU over the past two years was rejected three times and was the sole issue which united politicians from all parties.

UK Prime Minister May and opposition leader Corbyn have suggested that they may be close to reaching a Brexit compromise which could have enough parliamentary support to pass. Despite the extended deadline until October 31st 2019 to leave the EU, the race is on in order to deliver Brexit by May 22nd 2019. This is the eve of EU parliamentary elections which the UK wants to avoid as May herself stated it would not be right for the UK to participate in shaping the next EU government as the UK is preparing an exit from the world’s largest trading bloc.

As politicians in the UK return from the long Easter holiday weekend, they will have to face the same unresolved issues surrounding Brexit and how Prime Minister Theresa May is handling or mishandling the process. The UK was initially scheduled to leave the world’s largest trading block on March 29th 2019 which was then extended to April 12th 2019. While Brexit has divided the country, it has united it against the deal May negotiated with the EU over the past two plus years.

The EU agreed to extend Brexit until October 31st 2019 amid a compromise reached. UK Prime Minister May asked for an extension until June 30th 2019 while European Council President Donald Tusk argued for a much longer extension hoping for a Brexit reversal. French President Macron remained the sole opposition and stated that a delay past June 30th 2019 would harm the EU. In the end he gave in an agreed to the October 31st extended deadline, but the UK may leave prior to that if UK Parliament can agree on May’s Brexit deal.

The House of Commons voted on a bill yesterday which makes the even of a no-deal Brexit less likely. The measure passed by a single vote, 313-312. PM May voted against the bill, but she did reach out to opposition leader Corbyn, the Marxist leader of the Labour Party, in order to seek a Brexit compromise which will win over enough votes to pass a Brexit deal before May 22nd 2019. The EU stated that cross-party talks between May and Corbyn are a positive development as Corbyn seeks a soft Brexit which includes a customs union with trading bloc.

Late yesterday evening the UK Parliament voted 329-302 in order to take control over Brexit. The UK was supposed to leave this Friday, March 29th 2019, but is now more likely to depart on May 22nd 2019. This would be on the eve of EU Parliamentary elections and the absolute last date possible for the UK to depart, according to numerous EU officials. This has opened the door to a potentially much softer Brexit and close ties to the EU, which would go against the results of the 2016 referendum.

Later on today the UK Parliament is set to vote on the Brexit deal which May has tried to modify following her historic defeat week’s earlier. The UK and EU have been in heated discussions, but UK officials emerged late Sunday and labeled the negotiations “deadlocked” as the EU refuses to make changes to the Irish backstop issue at the heart of the current impasse. Yesterday some MP’s urged May to scrap this evening’s vote as not enough changes have been secured from the deal which was voted down.

March 29th 2019 is supposed to be the day the UK will leave the European Union and deliver to voters of the 2016 Brexit referendum what they demanded. Then PM Cameron resigned and May took the top spot in UK politics. She herself voter remain and many saw her unfit to deliver on the result of the referendum. During her premiership she had to fight battle after battle which she lost in most cases. UK politics has been divided under her leadership, or as some call it lack thereof, and even her own party is split.

Time continues to tick down and there has been no progress made on Brexit. Some analysts have waited for any catalyst which may change the current deadlock and a small number believe that the Brexit process may have just received what they were looking for. Two events in UK politics which may change the face of the Labour party, its Brexit approach and in the same process a new political party may rise. A lot of moving parts in the fragile, divided political arena started to move a lot faster and recent developments only add momentum as well as more uncertainty.

The House of Commons will vote this evening, yet again, on a series of amendments to Brexit. Depending on the outcome of this evening’s votes, forex traders will hopefully get a clearer picture on the path of Brexit and the implications for the British Pound. Yesterday evening, Prime Minister May abandoned her Brexit deal which she negotiated with the EU over an 18 month period after she lost the vote by a record amount. She tried until yesterday to win concessions, but has now changed course and is backing a proposal by pro-Brexit lawmakers to rewrite the deal.

Delays, defeats and deadlines have been the norm since Prime Minister May brought back a deal from Brussels almost nobody in Parliament supports. Today’s vote was scheduled for last month, but May pulled it as it was clear that she would suffer a great defeat. Today appears to be no different, but many are now waiting to see by how many votes she will actually lose in order to determine the next steps. The EU could give more concessions if May loses by less than 60 votes.

With less than 80 days to go before the UK will leave the European Union, UK Prime Minister May is no closer to get her Brexit deal approved in Parliament. She lost a vote in the House of Commons yesterday in regards to the timetable following an expected defeat on her Brexit deal on January 15th 2019. After the defeat, James Slack, May’s spokesperson stated that “Our intention has always been to respond quickly and provide certainty on the way forward in the event we lose. That is what we will do.”

British PM Theresa May survived the no confidence vote from her own Tory Party yesterday evening as 200 voted that they do have confidence in her while 117 voted that they have no confidence. This was more than enough for her to stay on as PM as there can’t be another no confidence vote for twelve months from her party. The opposition Labour Party may decide to push through a no confidence vote in her abilities which could lead to a new general election.

Brexit is 113 days away, but British Prime Minister Theresa May has only five days to get her Parliament to vote for her Brexit deal. It appears rather unlikely that she will be able to convince her own party to back her deal. May has deployed her Chief Whip, Julian Smith, in order to talk so called rebels into voting for May’s deal. The backdrop is that he comes empty handed which means there is little hope that those opposed to the deal will simply change their mind. They are against it for a reason and unless the reason changes, there is nothing there to change their mind.

The biggest news story in financial markets today is the chaos in which UK Prime Minister May found herself after announcing yesterday that the text for a draft agreement has been reached between the EU and the UK. While her press conference yesterday evening was lackluster, those few who cheered the text only had a few hours of joy. Today she was faced with more resignations from her inner circle in protest of her handling Brexit negotiations. The British Pound plunged this morning, but has started to stabilize near solid support levels following the initial knee-jerk reaction.

The UK labor market is very tight which explains today’s reported increase in average weekly earnings which expanded by 3.0% annualized for the three-month period ending in September. Excluding bonuses, the increase was reported at 3.2% annualized. This marked the fastest expansion since December 2008. The unemployment rate was reported at 4.1%, up from the previous month’s 43-year low of 4.0%. While wages are expanding, output per working hour is lagging and only expanded by 0.1% in the third-quarter while hours worked rose by 1.0%.

With time running out for the EU and the UK to reach a Brexit compromise, some try to create the illusion that a such a compromise is imminent. This is very inaccurate and misleading. While both sides are entangled in negotiations in order to resolve what currently appears to be the biggest problem, the Irish border, even a compromise is far off. While officials acknowledge that some progress has been made, they warn that obstacles remain before a compromise may be reached.

Maybe a few week’s away from divorce negotiations is what was needed in order for UK Prime Minister May to understand that the UK may be in a much better position than consensus tries to persuade everyone. With her job on the line, May appears to have gotten back on the track to fulfil her duties as a PM and deliver on the vote to leave the EU. Prior to the summer recess, May often pushed a soft Brexit which many Brexiteers pointed out would leave the UK in a weak position.

Brexit is inching closer, day-by-day, and the civil servants in charge of negotiation a deal are more or less on vacation for a few weeks. Maybe a breather is what they need, maybe they are not concerned about it given the UK’s team is led by a 'Remainer' or maybe it is a brilliant strategy to force the EU to come back from its break and actually negotiate.

After former Brexit Secretary David Davis resigned amid protest over May’s soft Brexit proposal which will keep the UK aligned to EU rules forever in the areas of goods and agriculture, new Brexit Secretary Dominic Raab met his counterpart Michel Barnier in Brussels to negotiate May’s new proposal. A different name, but the same outcome. Barnier rejected a key part of British Prime Minister Theresa May’s Brexit trade proposal.

Just a little over a week ago on the weekend of Friday, July 6th, UK Prime Minister Theresa May gathered her cabinet at her ‘Chequers’ country residence in order to put her foot down on a soft version of Brexit. Many claimed it was a make or break moment and as Monday approached it was hailed as a success and that her Conservative Tories rallied behind her in order to deliver a united front on her version of Brexit to her EU counterparts.

As the Brexit deadline approaches and the disagreements widen, some voices in UK politics are rumored to secretly prepare for yet another snap election. In the open, politicians dismiss the idea for an election but it is clear that they grow wary and nervous that one could creep up. Prime Minister Theresa May is losing support and many believe that she won’t be able to deliver the type of Brexit that would be acceptable to both sides of the aisle.

Until the most recent meeting of British Prime Minister Theresa May’s inner cabinet which took place yesterday, the dynamics were split right down the middle. May had five voices for a soft Brexit and five voices for a hard Brexit which gave the PM the deciding vote. May initially voted to remain in the EU and while she has vowed to respect the vote of the British public, she has been leaning towards a softer Brexit.

That’s one question which many would like to have answered. It is on everyone’s mind from the business community to the forex market. Previously the possibility of remaining in the customs union was a red line Prime Minister Theresa May and the pro-Brexit camp said they would not cross.

After UK voters decided to leave the European Union, the unthinkable happened for many pro-EU leaders: Article 50 was triggered. Article 50 is the former notification of a member country to leave the world’s largest trading bloc within 24 months.

Less than twelve months away from Brexit, business in the UK could soon receive a bit of news they have all been waiting for; the transition period. After the Brexit referendum, those UK businesses exposed to the EU have pleaded for a transition period in order to adjust to aftermath of Brexit. It was rumored that such a period will be agreed on, but no official announcement has been made.

Over the past few trading weeks the British Pound has rallied and so has the Australian Dollar. The GBPUSD and the GBPJPY have seen very strong advances and so has the AUDNZD.

The British Pound had a very volatile trading week which saw the British currency rally nicely, drop sharply and rally again today. Plenty of economic data was released during the week so far and forex traders have reacted to each individual report which is why the British Pound saw so much activity.