Brexit vote delayed, Sterling may kick off soon

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Brexit, EU Commission & Pound Sterling trending points

  • Brexit would likely to delay further, as debates continue
  • Pound gains for second day in a row, as positive Brexit headlines enhance risk-appeal
  • GBP/USD lifts higher, largely supported by a weaker American dollar
  • EU signals deadline extension to ensure that Britain leaves with a deal, and Pound soon may push forward further

Brexit vote delayed again, Pound sterling likely to extend gains

According to reports by multiple medias, Brexit may have been delayed by a couple of months and the Brexit vote scheduled to be taken place on February 27th, would be pushed back to March 12th.

UK PM Theresa May continues her search for concessions from the EU, although EU commission repeated again that they had proffered the best possible divorce deal for UK. PM May is scheduled to meet the leaders over Brussels again this week and if she remains unable to pass her Brexit amendment through the UK House of Commons by March 12th, the British Lawmakers would likely to take the matters in their hand. Parliament would likely to seek a delay in the Brexit process, as a majority of the lawmakers had not been vouching for a no-deal Brexit, instead they had been sprouting for a while to wipe out anything such as a no-deal Brexit, as a no-deal Brexit would cut UK off of the eurozone business for an indefinite period of time.

On the flipside, number of votes in favour of a new Brexit amendment had been increased substantially, as cited by several media reports, which had also been pushing the GBP higher, as the Pound Sterling had already posted two straight days of gain, while preparing this report, the 25thof February, GMT. 17.00, the GBP/USD pair was being traded at 1.3092, up by 0.33 percent so far, with further gains are highly likely.

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GBP/USD daily price chart

GBP/USD daily price chart

Bottom Line

Most of the time, uncertainty affects a currency negatively and pound sterling had been no exception. Despite a basket of Brexit headlines, blooming hope of negating a no-deal Brexit, there had been little gains so far, while sterling should have gained more, as multiple analysts suggested.

Just a few minutes earlier, Bank of England’s Governor Carney had talked and expressed optimism over a positive outcome on geo-political tensions, and followed by the reveal of speech, sterling had started to show extreme volatility, as GBP gains over 40pips over the last five to ten minutes, and possibility of further gains seem to be fathoming.

Meanwhile, the American dollar was slightly weaker today, falling against most of the majors and emerging market currencies as well as commodities, although crude oil fell on reports of US inventory rise.

Besides, the end of a trade war between US and China appear to be nearing, hiking the market optimism and boosting the investors’ confidence. As an aftermath, GBP would likely to test 1.3112 in a near-term outlook and a daily closure above that level could retest yearly high at 1.3217.

Read more on British Pound here

[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]

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