Here is what you need to know on Thursday, September 5:
- The British parliament has rejected prime minister Boris Johnson’s bill for early elections. Opposition lawmakers first want to complete the legislation blocking a no-deal Brexit which has successfully passed the House of Commons The bill now goes to the House of Lords and will likely be approved by late Friday. That allowed GBP/USD to extend its gains.
- Mark Carney, Governor of the Bank of England, reiterated that a no-deal Brexit will be less disruptive than previously thought due to preparations. That also supports the pound.
- US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer spoke with Chinese Vice Premier Liu He on the phone – providing hopes for face-to-face meetings. AUD/USD stands out with a significant advance above 0.68.
- The US dollar remains under pressure after Tuesday’s poor ISM Manufacturing PMI and as Fed officials have reiterated their concerns about the global economy.
- The US calendar features top-tier events. ADP Non-Farm Payrolls are expected to show a moderate increase of around 150K private-sector jobs and serve as a hint toward Friday’s employment report. The ISM Manufacturing PMI will likely continue showing growth but worries persist.
- Cryptocurrencies have stabilized after gaining earlier, with Bitcoin remaining below $11,000.
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