Brexit: May Unveils Plan B, Market Shrugs
Matt Weller, CFA, CMT January 21, 2019 5:51 PM
As my colleague Fawad Razaqzada noted earlier this morning, markets were relatively dull heading into the day’s marquee event, the release of UK PM Theresa May’s “Plan B” Brexit bill. Unfortunately, the “new” proposal did little to shake things up.
Despite an historic defeat of her previous deal, May merely made a few tweaks in today’s revised proposal. The Prime Minister struck a more inclusive tone, emphasizing the importance of worker’s rights and the environment in an attempt to appeal to Labour lawmakers. In a nod to the EU, she offered to waive a settled status fee for EU citizens living in Britan. On the sticky issue of the Northern Irish border, May said only that she would hold further consultations to "find the broadest possible consensus.”
Even though Plan B looks remarkably similar to Plan A, some analysts suggest that the impending Article 50 deadline (a mere 67 days from now), could prompt some MPs to vote in favor of the revised bill rather than risk a no-deal “hard” Brexit.
You have to squint to see the pound’s reaction to the release, with sterling ticking up by about 20 pips against most of its major rivals. Broadly speaking, the pound remains in the middle of its recent ranges, with traders now turning their attention to the reaction from MPs and the EU ahead of another vote next week.
Source: TradingView, 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.