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Pound collapsed on BBC post

Pound collapsed on BBC post

Erik Holm - Head of media

The government of British Prime Minister Boris Johnson is going to ask Queen Elizabeth II to extend the break in parliament until, mid-October, which will greatly complicate the attempt of lawmakers to block Brexit without a deal, reports the BBC. The pound fell in reaction to the news.

According to the plan, all parliament’s work will be suspended from about September 11 to October 14, when the Queen will open a new session of parliament, reports Laura Kenssberg from the BBC on Twitter. The Prime Minister’s Office did not respond promptly to Bloomberg’s request for comments. Parliament should resume work after the summer holidays on September 3. The pound fell in the moment by more than a 1% to $1.2155. The pound previously declined at the close of positions by hedge funds. Options traders do not give preference to either side: risk reversals are neutral.

The Bloomberg Dollar Spot Index has stabilized as the yen rises again, offsetting the decline in the Asian session and reached new intraday highs after the pound fell. The yield on 10-year treasury bonds remained virtually unchanged – 1.48% after falling to 1.44% on Monday, the lowest level since July 2016. Profit-fixing sales appear in 10-year securities, causing the promotion of long positions. However, overall, the flows are rather modest, according to two traders in Asia.

The New Zealand dollar is falling against most major currencies as investors prepare for a possible increase in trade tensions between the US and China. Qiwi fell to a new four-year low, as speculation is mounting that the Reserve Bank of New Zealand will weaken policy faster than its Australian counterpart. This fact prompted traders to buy AUD / NZD. The Australian dollar fell at the start of trading after a more significant than expected decline in construction, which dampened expectations of positive GDP data next week. NZD / USD drops 0.6% to 0.6326, the weakest level since September 2015. AUD / USD is down 0.3% to 0.6735.