Pound volatile as Westminster power struggle goes to the courts

Pound struggles after Boris Johnson's defeat in court.

It should be an exciting day in the markets today.  Yesterday the Scottish Court of Session ruled the proroguing of Parliament was illegal, a decision that gave the pound a brief boost, sending it up past 1.234 to the USD. However this still has to go to the Supreme Court and the government will be hoping to see it thrown out.

The realization seems to be sinking in with the currency market this morning, with sterling now dropping back past 1.233 in early selling.

All eyes on today’s ECB meeting

Barring any further dramatic news from Westminster, the big news today will be the European Central Bank meeting where Mario Draghi is widely expected to announce a series of loosening measures. Current Eurozone inflation is well below the 2% level and with the Eurozone economy, including Germany, now seen to be struggling. The EUR is currently looking range bound ahead of the Draghi press conference.

Morrisons leads FTSE stocks on Amazon Prime announcement

WM Morrison is leading the FTSE this morning, up more than 3% on the back of its announcement of a multi-year partnership with Amazon Prime. The supermarket chain reported flat sales over the six months to the start of August. The FTSE is marginally up 0.25%.

Please note these products may not be available to trade in all regions.

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.