By the end of the Tuesday trading session, volatility suddenly grew. This was caused by the new vote at the UK Parliament. On the one hand, the MPs approved the Brexit deal. On the other, they rejected the schedule for the Brexit legislation, designed to get the deal passed in three days to allow the UK to exit the EU before October 31. Hardly anyone can understand what’s going on anymore, especially in the context of the late-evening rush.
As a result, investors decided not to go into too much detail. They simply started selling off euro, pounds, stocks, and other risky assets – and buying USD, Japanese yens, and Swiss francs.
Nevertheless, EUR continues its short-term upward trend. Euro can benefit from a small correction: it will give investors an opportunity to enter the market at a lower price level.
Gold is slightly up, but there was very little volatility yesterday – less than on any other day for the past few months. $1500 per ounce is becoming an ever stronger resistance level.
DAX30 is down after 9 days of continued growth. SP500 also decreased following the UK news. Overall, on Tuesday the stock market didn’t demonstrate any dynamics of its own. All movement is spurred by fresh news, so we just have to wait and see what happens on Wednesday.
Very few worthy news today. Here are some things to look out for:
15:00 US housing prices for August
16:30 EIA Weekly Petroleum Status Report
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