Liam Fox says “no deal Brexit” more likely than an agreement

Trade Secretary Liam Fox stated that “intransigence” by EU officials is pushing us towards no deal as he put the chance of Britain crashing out a deal at 60%. He further added that Brussels’ chief negotiator Michel Barnier had not agreed to the UK’s Chequers proposals simply because “we have never done it before.” Fox said that he had not thought the likelihood of no-deal was higher than 50-50, but the risk had increased. According to him, if the EU did not like the proposal, they should “show us one that they can suggest that would be acceptable to us.”

source:CNBC, BBC News

HSBC, Europe’s largest bank, made a comeback by beating estimates in its financial results for the first half of 2018. The bank said that reported profit before tax went up by 4.58% to $10.71 billion in the six months of 2018, thus beating analysts estimates of $10.38 billion. Shares of HSBC, the Hang Seng Index rose by 0.83% after the Hong Kong market resume after a break. According to HSBC’s chief executive, John Flint, the results are in line with expectations.

Meanwhile, on Monday North Korean state media urged the United States to drop sanctions as it was investigating nine cases of shipments that potentially violated UN resolutions. South Korea is examining the cases but declined to detail the number of ships or identify the companies involved, saying the investigation was in the final phase. Meanwhile, the US President Donald Trump admitted that his son met Russian lawyer Kremlin-linked lawyer Natalia Veselnitskaya in June 2016. Special Counsel Robert Mueller is investigating US intelligence findings that Russians interfered in the US Presidential Election.

Technical Analysis

BTC/USD

BTC/USD

Bitcoin is seen fluctuating around the 7,088 region on Monday morning’s session as it tries to recover from previous session’s lows. The digital coin added 1.4% to $7,082 on the Bitfinex exchange, along with other major cryptocurrencies advancing on the crypto market today. Bitcoin is expected to edge higher and shift towards $7,200 later through the day, changes in the price of the US dollar could uplift this one.

EUR/USD

EUR/USD

The EUR/USD pair continued to shed losses on Friday’s session, closing on a bearish note at $1.15657. It looks towards a test of the year’s lows again as it continues to trade around $1.15 region earlier today. The US dollar held firm against major currencies on Monday, following the US jobs data reported on Friday. The currency pair needs more support from the US currency and the euro to move towards the 1.16 level.

DJI

DJI

The Dow Jones Industrial Average edged higher on Friday, led by gains in Apple and IBM and closed at 25,646 points. Apple reached a milestone for the first time last Thursday as investors cheered strong quarterly results earlier last week. IBM, on the other hand edged up by more than 3%, leading the 30-stock index higher by 136.42 points. The Dow is expected to open on a positive note in today’s session.

Things to watch on the market

Tip 1

Russia’s Consumer Price Index (CPI) is due at 13:00 GMT.

 

Tip 2

Gold is seen shedding losses on Monday’s early session, trading at $1,212 an ounce.