News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/v6RGICQvge
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/rws9LHJV3E
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2021/09/18/Japanese-Yen-Forecast-JPY-Crosses-Eye-BoJ-CPI-as-Haven-Flows-Bolster-Yen-Strength.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/FVisZuTP6M
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
GBPUSD: Sterling Rises After MPs Vote Down No-Deal Brexit

GBPUSD: Sterling Rises After MPs Vote Down No-Deal Brexit

Rich Dvorak, Analyst

BREXIT LATEST – TALKING POINTS

Today’s action in British Parliament focused on the possibility of the United Kingdom departing the European Union without a Brexit deal. MPs voted on Caroline Spelman’s Amendment A and Damian Green’s Amendment F aiming to tailor the Prime Minister’s Brexit Withdrawal Agreement. PM Theresa May’s decisive defeat yesterday when the second meaningful vote failed to garner enough support to pass her renegotiated Brexit deal brought about today’s votes.

Amendment A, which narrowly passed with 312 votes in favor and 308 against, rejects the UK leaving the EU without a Withdrawal Agreement and a Framework for the Future Relationship. On the other hand, Amendment F was voted down with 374 ‘noes’ and 164 ‘ayes’ which would have pushed for a 21-month transition period for the UK to prepare for a no-deal Brexit.

GBPUSD CURRENCY PRICE CHART: 1-MINUTE TIME FRAME (MARCH 13, 2019 INTRADAY)

GBPUSD response to no-deal Brexit vote on March 13, 2019

The GBPUSD pushed higher immediately following the news as the risk of the UK crashing out of the EU without a deal continues to dwindle. Although the results of today’s votes were widely expected, the next direction of Brexit remains unclear. MPs will gather at the House of Commons again tomorrow who will be voting to extend Article 50.

This would effectively delay the March 29 Brexit date currently set as the deadline for the UK to separate from the EU. While an extension has looked increasingly likely over the last few days, several aspects such as the length of the extension and its feasibility is still open for debate.

GBPUSD CURRENCY PRICE CHART: DAILY TIME FRAME (DECEMBER 03, 2018 TO MARCH 13, 2019)

GBPUSD: Sterling Rises After MPs Vote Down No-Deal Brexit

In response to increased uncertainty, however, rampant GBPUSD volatility has sent the cable’s ATR exploding back to its highest level since December in the days leading up to the PM’s historic defeat of her original Brexit deal. Tomorrow’s debate could bring about even more price action for the Pound considering the wide-range of possibilities regarding Article 50 – ‘for how long?’ being the biggest outstanding question. Speculation calls for either a short extension or a long one, but both face their own respective complications.

A short extension could see the March 29 Brexit deadline kicked back somewhere between one and three months. The issue with a short extension, however, is the possibility of Brexit negotiations materially interfering with elections in the European Union – something EU leaders have voiced concern over. On the other hand, a long extension that would push Brexit back around a year could increase the likelihood of a second referendum or general election. Consequently, PM May is expected to favor a short extension.

Regardless of the timeline decided by British Parliament tomorrow, the request needs to be approved in unanimity by the EU27. Prominent leaders of the EU have voiced skepticism over the UK’s need for an extension arguing that the government needs to simply make up its mind if it wants to leave the EU or not.

The PM took the House floor following today’s votes and stated that a short Brexit extension is only available if a deal is agreed upon seeing that renegotiating would require a longer extension. But, the EU has clearly pointed out that the deal on the table is and will be the only deal available.

As it stands now, the legal default remains with the UK crashing out of the EU without a deal. Nevertheless, if extending Article 50 does in fact pass the House of Commons tomorrow, the EU will likely discuss and decide to accept or reject the UK’s request at next week’s summit.

- Written by Rich Dvorak, Junior Analyst for DailyFX

- Follow @RichDvorakFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES