Brexit Speaking Factors:
A day after Theresa Could’s Brexit deal was voted down, the Prime Minister discovered herself dealing with a vote of no confidence
The vote failed 306-325 and reaffirms the help for Theresa Could regardless of the shortage of progress in Brexit
The Pound instantly tiptoed larger to recoup a few of the day’s earlier losses
See Q1’19 forecasts for the US Greenback, Euro, British Pound and extra with the DailyFX Buying and selling Guides.
United Kingdom Prime Minister Theresa Could survived a vote of no confidence as we speak after the vote failed 306-325. Whereas the end result was anticipated, the margin of victory in yesterday’s vote forged some doubt on as we speak’s. Nonetheless, the failed vote reaffirms help for Could regardless of a gridlocked Brexit scenario.
Nonetheless, on condition that members of parliament will not be prepared for an additional election, the failed vote introduced forth by the Labour celebration suggests a tender Brexit can nonetheless be achieved. In the identical vein, Prime Minister Theresa Could has promised to seek out extra frequent floor throughout celebration traces which might finally lead to renewed negotiations with Brussels. Then again, all Brexit choices appear equally undesirable for the MPs and a second referendum stays a chance, albeit relatively unlikely.
GBP/USD Worth Chart 1 – Minute Timeframe, January 16th
The Pound traded barely larger after the vote, regardless of the anticipated end result. Though Theresa Could will stay on the helm, so too will uncertainty and the geopolitical tensions caused by Brexit. With that in thoughts, the Pound will proceed to take leads from Brexit negotiations and new developments.
–Written by Peter Hanks, Junior Analyst for DailyFX.com
Contact and observe Peter on Twitter @PeterHanksFX
Learn extra: European Political Tensions Serving to Maintain DXY Index Afloat
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