XE Morning Update - August 28, 2019

The NZDUSD opens at 0.6365 (mid-rate) this morning.

The British pound is the best performing of the G10 currencies strengthening against all its counterparties after opposition party leaders in the UK agreed to work together in an effort to prevent the UK leaving EU without a deal.

In a joint statement leaders of the labour Party, Scottish National Party, the Liberal Democrats, and the Green Party said that they would use legislation to stop a no-deal Brexit but did not rule out the possibility of calling for a vote of no confidence in the government.

MP’s are now expected to request an emergency debate next Tuesday, when parliament returns after the summer recess, with the aim of passing a bill to force Mr Johnson into asking the EU for another extension to the Article 50 divorce process.

The only economic data release of note the US Conference Board reported its consumer confidence index edged down to 135.1 in August after surging up to 135.8 in July. The result was well ahead of expectations with economists’ forecasting the index to plummet to 130.0 on the back of ongoing trade tensions.

US equity markets have stalled with China still denying that any top Chinese officials called asking for the resumption of trade talks. Chinese Foreign Ministry spokesman Geng Shuang told reporters “I have not heard of this situation regarding the two calls that the U.S. mentioned in the weekend,” and he hopes Washington can stop its wrong actions and create conditions for talks.

Global equity remain mixed, - Dow -0.36%, S&P 500 -0.28%, FTSE -0.17%, DAX +0.62%, CAC +0.67%, Nikkei +0.96%, Shanghai +1.35%.

Gold prices are up 1.0% at $1,543 an ounce. WTI Crude Oil prices have reversed yesterday’s move and are currently up 1.8% trading at $54.42 a barrel.

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