Brexit Latest: Sterling (GBP) Suffers on Continued Brexit Stand-Off
Brexit Latest: News, Updates and Sterling Technical Analysis
- Fears remain that UK PM May is running down the Brexit clock.
- EU stance remains unchanged – no change to the Withdrawal Agreement.
Brexit Discussions Remain in Limbo, Sterling Slips Lower
UK PMTheresa May will today ask Parliament for another two weeks to try and persuade the EU to resolve the ongoing Irish border deadlock. Fears are now growing that PM May is running down the Brexit clock, a situation that may finally lead to Parliament being given the binary option of PM May’s current deal or no deal at all. While the PM remains confident that she can agree a deal with the EU to ensure no hard border in Ireland, the EU remain firm that there will be no change to the Withdrawal Agreement and that the UK will have to shift its stance. On Thursday there will be a vote on various amendments to the PM May’s bill in the House, but nothing is, currently, expected to be voted through that will change the current impasse.
While the clock ticks, Sterling continues to try and hold support levels against a range of currencies but with sentiment waning, further downside may be likely in the near-term. GBPUSD has also been moved lower by ongoing US dollar strength, as global risk sentiment eases for now. The pair touched a three-week low at 1.2830 earlier in the session and will need a positive statement of intent by PM May to prevent this level being tested again.
GBPUSD Daily Price Chart (June 2018– February 12, 2019)
IG Retail Sentimentdata shows clients are 62.6% net-long GBPUSD, a bearish contrarian indicator. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBPUSD bearish contrarian trading bias.
--- Written by Nick Cawley, Analyst
To contact Nick, email him at firstname.lastname@example.org
Follow Nick on Twitter @nickcawley1
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.