TALKING POINTS:
The Sterling came under renewed selling pressure in response to the latest Brexit development with PM Boris Johnson aiming to strengthen his hand and steer the UK closer toward no-deal by suspending Parliament.
The British Pound faces major event risk with UK Q2 GDP data due for release Friday which looks to provide the latest health check on the British economy amid prolonged Brexit uncertainty.
The GBP/USD is now exposed to March 2017 lows over rising concerns over a “no-deal” Brexit. Ahead, the anti-risk Japanese Yan may look past the Bank of Japan for more prominent risk.
The US Dollar uptrend may extend after resistance was taken out on US GDP, Alphabet and Twitter earnings propelled the S&P 500 higher. GBP/USD is vulnerable to the latest Brexit woes.
The Pound Sterling outlook turned more bearish after GBPUSD cleared support as the Dollar gained and the Euro weakened. AUDUSD may rise if the RBA downplays near-term rate cut bets.
Implied volatility measures for the British Pound plunged following the European Council's offer to delay Brexit again, but less uncertainty could provide GBP traders with a unique opportunity.