Market News & Analysis
Pound trades to the tune of Brexit headlines
Fiona Cincotta March 12, 2019 4:14 PM
Still, Sterling has managed to pare some of this morning’s losses despite the DUP confirming that they will not be supporting the PM’s deal. Other, ministers, have softened their tone lending support to GBP.
Should Theresa May’s revised version of the Brexit deal be sufficient to win over the 100 votes she needed, and the House of Commons votes her deal through, we expect the pound to rally sharply pushing through resistance at $1.33, before making an attempt on $1.3380. The move higher stemming from the fact that there will at last be a level of certainty surrounding Brexit, rather than the fact the UK is leaving the EU.
A defeat will mean that Parliament will vote tomorrow on no deal Brexit. The UK being a step closer towards a no deal Brexit will send a shiver down the spine of the pound. We would expect to see an extension of this morning’s selloff. In this case we anticipate a rapid break below support at $1.30 prior to testing $1.2960. A break through these levels could see the pound drop sharply towards $1.2895
From time to time, GAIN Capital Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.