PM May shuns Brexit advice, pound falls further

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PM May eschews Brexit advice, Sterling continue to decline

PM May pressing ahead despite emerging no-confidence vote issue

  • UK PM May pressing Brexit despite threat of a no-confidence vote, as she would be leaving for Brussels to meet EU officials before an urgent EU summit due November 25th
  • Sterling sluggishly pulsing back from last week’s sell-off, as FED’s dovish comment came in to play
  • UK PM May commented, “ousting me won’t help Brexit negotiations”, prepotent response to puissant political turmoil

In a recent comment in Sunday, PM May said that supplanting her would not be helping the Brexit negotiations, before leaving for Brussels to meet the EU officials ahead of an upcoming emergency meeting in November 25th. The prime minister May, also commented that the next seven days would be crucial for Brexit, as she would have multiple meeting with the EU officials regarding Brexit deals.

Concomitantly, the UK parliament still remained messy and tempestuous, as there were 20 letters of no-confidence stored in the UK parliament, while 48 letters were required to call for a vote of no-confidence. Actually, the Brexit issues had been enlivening in the past week, when former Brexit Minister stepped off and that critical issue had been followed by a resignation of couple of cabinet members.

Things were getting out of the hands, as PM May’s opposition and a large sum of her conservative’s started to urge for a no-confidence vote. Crucially, this particular week could be pivotal for Brexit and GBP, as PM May would be meeting several EU officials in Brussels, and there is definitive chance of development of UK-Irish border issue and Euro zone-UK trade relationship.

USD/GBP daily chart

USD/GBP daily chart

GBP recovering from last week’s lows, still vulnerable to a downward jolt

GBP begins the week on a mildly positive tone, crawlingly gains back some of last week’s losses, yet the GBP outlook remains cloudy, as PM May has been persistently ignoring any kind of Brexit advice. Five senior conservatives of UK parliament told that they would be handing over the updated Brexit amendments over the weekends. However, it appears that PM May is very unlikely to listen to any Brexit advice.

In the Asia Pacific trading session today, sterling has been recovering slow, yet steady gains and residing at 1.2825. PM May will be speaking at a CBI conference later today before leaving for Brussels to meet EU Commission present Juncker and the market might react with volatility after the conference.

Bottom Line

Brexit chaos still left British Pound vulnerable to a wobbling move and a bullish momentum towards 1.2922 might come in to play, as dovish US FED comment has been keeping the USD bull-run at bay. GBP/USD pair is currently trading at 1.2825, and the initial resistance lies slightly over 1.2920 region. A break above 1.2920 would open up the opportune moment for GBP to break above 1.3175, the recent series of lower highs. On the flipside, key support resides at 1.2625 region (October low).

Read more on Brexit news 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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