Sterling steady as May plays on
Theresa May gets to play Brexit for at least another day
Share this:
Sterling steady as May plays on
Theresa May gets to play Brexit for at least another day (two weeks in fact.)
- The strategic nous of Labour’s Yvette Cooper is also becoming clearer
- Cooper earlier backed a (stalking horse?) amendment aiming to hold the PM to a vote to delay Brexit
- But that plan was pulled at the last minute, leaving Cooper’s new amendment that simply noted a vote promised for 14th March
- In another surprise, it won government backing, passing 502/20
Other key developments
- Amendment protecting EU citizens’ rights agreed without a vote
- Labour’s Jeremy Corbyn got fully on board the Second Referendum train…though it’s going nowhere as it lacks a majority
- 20 Conservatives voted against Cooper’s plan whilst 88 abstained (AKA a minority)
What happens?
As things stand, the most likely fate of the government’s Brexit plan is still a defeat by 12th March, paving the way for a delay request
Sterling outlookThe cost of options expiring after 29th March continues to slide. In other words, demand to insure against or capitalise on sharp post-Brexit volatility has stopped rising
- In lieu of (likely) further twists and turns, it’s now a waiting game (including for sterling)
- Technically, note the pound is elevated above its 21-day average, which itself points higher
- But after a 4.5% surge from February lows, caution plays against that ebullient clip continuing
- After GBP/USD topped $1.33 for the first time since September, dips below are probable
- January’s $1.3216 high is a target
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
RBA delivers 25bp hike, Bullock now the main event
The RBA delivered the expected 25bp hike, but Bullock’s press conference now looms as the bigger volatility risk for AUD/USD and the ASX 200.
EUR/USD, USD/JPY Outlook: Oil, yields and an FX identity crisis
Crude oil is setting the tone across rates and FX, leaving EUR/USD vulnerable and USD/JPY caught between higher Treasury yields and the growing threat of intervention
AUD/USD Analysis: What's Next for the Australian Dollar After the RBA Decision?
Recent trading sessions have reflected a more neutral tone around the Australian dollar. This can be seen in AUD/USD price action, which has posted moves of roughly 0.2% over the last two sessions without establishing a clear direction. Much of this lack of momentum is linked to expectations surrounding the next policy moves from both the Reserve Bank of Australia (RBA) and the Federal Reserve.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.