BREXIT LATEST: BRITISH POUND JUMPS AS UK PARLIAMENT VOTE TO BLOCK NO-DEAL
GBPUSD has skyrocketed over 200 pips off multi-year lows as British MPs go the most recent Brexit vote aiming to forestall the UK’s no-deal departure The Pound Sterling might proceed to claw again current draw back as no-deal Brexit danger fades following Parliament’s passage of the most recent Brexit delay invoice Try what IG Shopper Sentiment information suggests about spot GBPUSD retail dealer positioning
Throughout Tuesday’s buying and selling session, we highlighted how the Pound Sterling was set to climb amid UK Parliament passing crucial Brexit votes as British MPs search to forestall departing the EU and not using a deal on the October 31 Brexit deadline. The retracement increased in spot GBPUSD started after information broke out yesterday that Conservative PM Boris Johnson misplaced his majority following the defection of prior-Tory MP Phillip Lee. British Pound upward momentum continued following stories MPs handed laws to manage Parliament’s agenda and stop PM Boris Johnson sending the Home of Commons on recess
GBPUSD PRICE CHART: 1-HOUR TIME FRAME (AUGUST 30, 2019 TO SEPTEMBER 04, 2019)
Turning to right this moment, spot GBPUSD worth motion has continued its ascent and now trades over 200 pips increased since plunging beneath the 1.2000 deal with earlier this week. Prolonged positive factors for the Pound Sterling comes amid stories that the newest Brexit vote handed Parliament 327-299 which calls on the Conservative authorities to request from the EU one other extension to Article 50 (i.e. delay Brexit once more).
Try our Brexit Timeline for particulars on how Brexit negotiations have impacted the UK, Pound Sterling and monetary markets.
But, PM Boris Johnson has adamantly voiced his opposition to delaying Brexit once more and promised to sever the UK from the EU on the October 31 deadline – regardless whether or not or not a Brexit Withdrawal Settlement deal could be efficiently brokered. Additionally, in response to right this moment’s Brexit vote passing Parliament, PM Boris Johnson has proposed calling for a common election on October 15. Now, markets await to seek out out the outcomes of tonight’s vote in Parliament,which is scheduled for 9:30 PM native UK time, on whether or not or not MPs will again a common election.
Whereas the “Brexit can-kicking” might assist the Pound Sterling recuperate from current multi-year lows, the rise in spot GBPUSD might show to be short-lived contemplating the continuing Brexit deadlock stays largely unresolved. As such, holding shut tabs on British Pound implied volatility in gentle of its inverse relationship to Sterling spot costs might show useful as the most recent Brexit developments unfold.
— Written by Wealthy Dvorak, Junior Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception