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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
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
Gold
Bullish
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/zSu6vNcTG5
  • #CLP, #BRL and the #ZAR are expected to be the most active Emerging Markets currencies vs #USD with 1-week implied volatilities at 15.43, 12.32 and 11.38 respectively
  • RT @RANsquawk: Asia fails to sustain the momentum from last Friday's record highs on Wall St, with the major indices in the region subdued…
  • (Asia Pacific AM Briefing) Will USD/JPY, AUD/USD and NZD/USD Prices Extend Recent Gains? $USDJPY $AUDUSD $NZDUSD - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2019/11/18/Will-USDJPY-AUDUSD-and-NZDUSD-Prices-Extend-Recent-Gains.html?CHID=9&QPID=917702 https://t.co/NGza2qGF5r
  • 🇬🇧 GBP Rightmove House Prices (YoY) (NOV), Actual: 0.3% Expected: N/A Previous: -0.2% https://www.dailyfx.com/economic-calendar#2019-11-18
  • UK’s Rightmove House Prices (YoY) (NOV) Actual: 0.3% Est: N/A Previous: -0.2% #GBP
  • Heads Up:🇬🇧 GBP Rightmove House Prices (YoY) (NOV) due at 00:01 GMT (15min), Actual: N/A Expected: N/A Previous: -0.2% https://www.dailyfx.com/economic-calendar#2019-11-18
  • 🇯🇵 JPY Housing Loans (YoY) (3Q), Actual: 2.9% Expected: N/A Previous: 2.2% https://www.dailyfx.com/economic-calendar#2019-11-17
  • RT @MarketWatch: Hong Kong police storm campus to flush out protesters amid first appearance of Chinese troops https://t.co/cxiw7k9hWR
  • Japan’s Housing Loans (YoY) (3Q) Actual: 2.9% Est: N/A Previous: 2.2% #JPY
Will GBP Rally Resume With PM Theresa May’s Resignation Offer?

Will GBP Rally Resume With PM Theresa May’s Resignation Offer?

2019-03-27 19:00:00
Rich Dvorak, Junior Analyst
Share:

BREXIT LATEST – TALKING POINTS

  • Prime Minister Theresa May announces she will resign from her position if her negotiated Brexit Withdrawal Agreement can find enough support amid vast uncertainty over the United Kingdom’s departure from the European Union
  • GBPUSD little changed by the news as it remains unknown when or if a third meaningful vote by British MPs over PM May’s Brexit deal will occur
  • Take a look at this Brexit Timeline for a chronological series of events surrounding UK leaving the EU and impact on the British Pound

In the latest Brexit development, PM Theresa May offers up her future resignation contingent on MPs supporting her Brexit deal when it comes to vote for a third time. The Prime Minister’s decision is believed to open the door for her successor to continue future negotiations with the European Union which could be enough of a deal sweetener to convince majority of British politicians to back her Brexit Withdrawal Agreement.

Prime Minister Theresa May originally came into power following the historical referendum that removed David Cameron from the position. The announcement was made prior to a series of indicative votes that will be held on various Parliamentary motions later today but comes after PM May lost the House of Common’s agenda to MPs earlier this week.

Learn More About Brexit’s Impact on the GBP and How the Pound Might Move After Parliamentary Vote Here

The PM’s said in her statement “we have to finish the job in hand...I know there is a desire for a new approach and new leadership in the second phase of the Brexit negotiations and I won’t stand in the way of that.” She concluded by requesting MPs to complete their historic duty by backing her deal and delivering on the referendum result with a smooth, orderly exit.

The British Pound was up slightly but little changed on balance immediately after the news. Although, the Sterling could resume its climb experienced so far this year – especially if the PM’s new offer is now enough to get her deal a majority backing with support from key Brexit hardliners and DUP.

GBPUSD CURRENCY PRICE CHART: 4-HOUR TIME FRAME (MARCH 13, 2019 TO MARCH 27, 2019)

GBPUSD Currency Price Chart Brexit PM Theresa May Resign Offer to Pass Brexit Deal

GBPUSD year-to-date performance was up roughly 6 percent when spot prices peaked near the 1.3382 mark on March 13 before slipping roughly 300 pips over the last two weeks. The short-term selloff came amid a rush of Brexit uncertainty with British MPs backing themselves up against the previous March 29 Brexit deadline as a no-deal departure appeared increasingly likely.

Read the Latest GBPUSD Technical Analysis Here

The European Council decided to grant the UK a ‘Brexit delay’ until April 12, however, providing the House of Commons with more time to sort out its desired Brexit path. The offer to extend Article 50 is contingent on passing PM May’s Withdrawal Agreement and the UK could see the Brexit deadline extended further until May 22. This clouded the possible Brexit outcomes considering voiced opposition over the Brexit deal the EU has agreed to which was shot down by British MPs twice already.

To complicate things further, House Speaker Bercow made the decision not to put the Brexit deal to a third meaningful vote since the same motion cannot be voted on twice. That same day, British MPs approved the Letwin Amendment taking control of the House’s agenda to determine possible Brexit options that have potential at passing with majority. Now, these ‘indicative votes’ will be voted on in Parliament later tonight and look to provide further clarity over the GBP’s next direction.

- 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

News & Analysis at your fingertips.