Free Profitable Forex Newsletter
Hey! This is Philip with another insight of the Free Profitable Forex Newsletter!
Pound Sterling continues to be the most volatile major currency as the Brexit saga continues. Yesterday, the EU and the UK agreed to extend the March 29 deadline by 2 weeks, hence the new deadline is now April 12.
Below, we are sharing the view on GBP by the research team at Mitsubishi UFJ Financial Group (MUFG), provided by our partner eFXPlus.
GBP: Short Brexit Delay Provides Fleeting Pound Relief; What's Next? - MUFG
"European leaders yesterday agreed to postpone the Brexit deadline for two weeks – to April 12- which saw the pound recover much of its losses from the day and trade around 1.3150 at the start of today’s European trading session. This postponement is unconditional and has been extended as a lifeline in the event that the House of Commons fails to ratify her deal before the 29th of March. In addition to this if her deal does pass next week the EU have agreed to provide a technical extension
to the 22nd of May," MUFG notes.
"This has pushed back the risk of the UK crashing out of the EU in a “No Deal” Brexit by next Friday and given some much needed breathing room to the UK government just as matters were coming to a fever pitch...If PM May’s deal fails again next week she will be faced with three remaining options: i) the choice of having the UK crash out on the 12th of April, ii) seeking a longer extension and field candidates for the European elections, and iii) as a nuclear option consider revoking Article 50
to cancel Brexit....We expect UK MPs to vote to change the Article 50 deadline to the 12th April next week," MUFG adds.
First appeared on eFXplus on Mar 22 - 08:42 AM
GBP to remain volatile with a bullish bias
With that said, the bias on GBP is likely to remain bullish but the currency to stay volatile as new Brexit headlines hit the wires. The most probable outcome is still for no-deal Brexit to be avoided which should continue to support the Pound versus its peers.
This insight is from the eFXplus service. eFXplus provides price-based FX data derived from banks and institutions and Thomson Reuters IFR Markets.
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