Pound volatile after latest vote
Published on 14.03.2019 09:56

There remains uncertainty in the Forex Market with regards to the British pound going forward after yesterday’s voting in the British parliament where the decision to leave the EU with no deal was taken off the table.

This now sets the stage for another vote later in the week where the parliament will decide whether to extend the deadline for Brexit which some say is going to add to the uncertainty and put further pressure on the GBP/USD.

Even if the British parliament vote for an extension it doesn’t mean it will be accepted by the European side and Prime Minister May noted that they will require a compelling reason to agree to shift the deadline which has to be agreed on by all EU member states

“Let me be clear that voting against leaving without a deal and for an extension does not solve the problems we face,”

Mrs. May said. “The E.U. will want to know what use we mean to make of such an extension, and the House will have to answer that question.” She added.

The pound briefly hit a 9-month high after the latest round of Brexit voting and it seems like the market prefers a scenario where the UK leaves the EU with some sort of deal and as long as that option remains valid there are still going to be some strong backers for the British currency

"Parliament has made it clear that unless there is a deal, they are not ready to leave the EU. Sterling traders are in love with this concept and this pushed the price of Sterling higher against the dollar," said Naeem Aslam, chief market analyst at Think Markets UK

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Andrew Masters

Analyst

The world of trading has no boundaries

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 58% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

IMPORTANT: Please be informed, that our services are available for Professional Clients only. Our website is currently under review for the implementation of the correspondent amendments.

Important notice
By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.