CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Pound drops as hopes for Brexit deal fade

09:31 8 October 2019

Summary:

  • Reports that Brexit talks “close to breaking down”

  • GBP trading lower across the board

  • LSE shares swoon as HKEX pull out

 

There’s been some selling seen in the pound in recent trade after the latest reports have poured cold water on the hopes of the UK and EU reaching a new Brexit agreement before month end. Laura Kuenssberg has quoted a no 10 source on Twitter that talks in Brussels are “close to breaking down” with the political editor for the BBC stating that it feels like any chance of a deal this month just died.

GBP is trading lower on the day, with the largest declines seen against the Australian and New Zealand dollars. Source: xStation


Given the lukewarm reaction to the government’s proposals last week this shouldn’t come as too much of a surprise, and now it seems increasingly likely that we get a general election almost solely focused on Brexit before the year is out. The pound is trading lower against all its peers on the day and is back near its lowest level of the month against the US dollar, trading around 1.2250 last.   

GBPUSD remains in its cloud on a D1 timeframe with the trend not too clear at present. Recent lows around 1.2205 could be seen as potential support. Source: xStation 

 

LSE shares slide after takeover bid dropped

The worst performing blue-chip in London this morning is the London Stock Exchange Group with shares falling by as much as 6% after Hong Kong Exchanges and Clearing announced it would drop its £32B takeover offer. Shares in LSE have surged higher in recent months as speculation mounted that a takeover was on the cards, but given the current political disruption in Hong Kong it always seemed at least a tad optimistic to think this would go through without some serious resistance. There’s been a clear trend of consolidation amongst the world’s largest trading exchanges in recent years and while this latest attempt has come up short, it would not be too surprising for the LSE to be subject to further takeover interest going forward - especially if the pound remains at the current depressed levels that make the valuation more attractive to foreign investors.  

Shares in LSE are sharply lower this morning on the takeover news. The market has been in a clear uptrend for much of the year but today’s drop sees the market back below the 21 EMA. Source: xStation  

 

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back