GBP gains despite another day of Brexit chaos

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GBP gains as May’s Brexit strategy Digests a slimmer defeat

Brexit, Pound Sterling & GBP/USD pair trending points

  • The UK lawmakers rejected PM May’s Brexit strategy, GBP outlook appears to be bearish
  • UK House of Common and parliament members are against great odds, as EU seems unlikely to renegotiate again over a Brexit deal
  • PM May has 12 days in hand to convince her lawmakers, before another Brexit vote, which would likely to rupture the Brexit balloons
  • GBP gains against most of the currencies today after intense volatility, as European shares gave up gain on tottered US retail sales data, that posted its weakest reading since the year of great financial depression.

Pound sterling surges against a gauge of currencies including majors after Brexit vote

Following the vote on Brexit strategy, the Great Britain Pound gains against a basket of global currencies including seven major currencies, which are considered to be the benchmarks. GBP posted one its biggest gains against euro, as it rose over 0.69 percent to 0.8761 so far, while the pound sterling gains 0.67 percent against Swiss Franc to 1.2946, posting one of its biggest intra-day gains since mid-January.

GBP/EUR daily price chart

GBP/EUR daily price chart

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GBP/CHF daily price chart

GBP/CHF daily price chart

While this report was being prepared (the 15thof February, GMT. 16.30), Great Britain Pound was trading 0.27 percent higher against Australian dollar and 0.28 percent higher against New Zealand dollar. Meanwhile, the GBP gains 0.39 percent against Canadian Dollar after five straight days of losses to 1.7079 and the heavyweight British currency also gains against the safe-haven Japanese Yen by 0.63 percent to 142.30.

GBP/USD daily price chart

GBP/USD daily price chart

GBP/CAD daily price chart

GBP/CAD daily price chart

Amid a tormented traders’ confidence following poor US retail sales data that missed the Wall St. forecast by a wide margin, +0.1 percent to -1.2 percent, the GBP/USD pair gains 0.56 percent to 1.2871 so far with further gains appear to be looming.

GBP gains as May’s Brexit strategy Digests a slimmer defeat

The UK Prime Minister Theresa May had suffered another expected defeat in the UK House of Commons at Thursday (February 14th) evening, as the Brexit deadline has been ticking on. While only 43 days are left before Britain leaves EU, questions raised whether UK lawmakers would agree to leave without a deal, causing daedal distress for the country’s economy, as a no-deal Brexit would bar Britain from doing business with other neighbouring eurozone countries.

Yesterday’s defeat had been another concrete evidence of the political gridlock between the parliament members and the UK government. Although, a defeat was widely expected, yet the vote tallies another defeat into PM Theresa May’s portfolio. Yesterday’s Brexit strategy was defeated by 45 votes, 303 to 258, however, since the gap was decreasing with an earlier Brexit vote that experienced a defeat by 420 votes, 12 days may have been proved to be sufficient for May to convince her lawmakers for going along with her Brexit strategy.

Bottom Line

Since Brexit appears to be a double-edged source, yet PM May’s Brexit strategy, which includes several compensations to the EU commission, seems much blunter than a no-deal Brexit which would unveil multiple sanctions on United Kingdom’s economy.

Since the number of Brexit strategy oppositions are declining, the more practical facts started to unveil themselves, and Great Britain Pound becomes upbeat as an aftermath, though the European shares faltered following weak US data from a three-months high.

So far, the Great Britain Pound seems well-poised to gain further with traders are eyeing a critical 1.30 level following the end of a critical trade talk between US and China, while PM May would be trying to persuade more Brexit oppositions.

Read more Brexit 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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