Brexit update: Tuesday’s MPs vote to be pulled?
Fawad Razaqzada December 10, 2018 6:56 AM
The GBP/USD has dropped to its session lows while the EUR/GBP has hit 0.9000 on the back of news reports that UK Prime Minister Theresa May is going to delay Tuesday’s parliament vote in order to avoid a huge defeat.
The GBP/USD has dropped to its session lows while the EUR/GBP has hit 0.9000 on the back of news reports that UK Prime Minister Theresa May is going to delay Tuesday’s parliament vote in order to avoid a huge defeat. Several ministers have apparently pushed for the delay so that Mrs. May can seek extra clarification from the EU on the backstop agreement. The European Commission spokesperson has said the EU "will not renegotiate" on Brexit agreement.
Earlier, the European Court of Justice ruled the UK can cancel Brexit without the permission of the other 27 EU members. The decision comes a day before MPs were due to vote on Theresa May's deal for leaving the EU – but this could be delayed, judging by the headlines that have emerged.
Meanwhile, UK economic growth has slowed in the three months to the end of October. There was a sharp drop in manufacturing output although this was partly offset by a growth in IT services.
- GDP 0.1% m/m; +0.4% in the three months to the end of October
- Manufacturing output was flat during the three-month period due to a sharp drop in pharmaceutical and transport equipment manufacturing.
- Manufacturing production for October printed -0.9% m/m vs. flat expected
- Construction output -0.2% vs. -0.4%
At the time of writing, the GBP/USD was hitting fresh session lows around 1.2660. As things stand, rates look poised to drop towards the 127.2% Fibonacci extension level around 1.2490 over time, although with the dollar weakening against other currencies, we wouldn’t be surprised if price creates a false break pattern here. After all, the above news was partially priced in.
Source: TradingView and FOREX.com.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.