May’s Brexit defeated again, GBP, EURO firmly rebound

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GBP, EURO, Brexit and US dollar trending points

  • Tuesday (March 12th) delivers another landmark defeat for PM May’s amended Brexit, as UK lawmakers rejected the Brexit amendment by 149 votes
  • Today’s (March 13th) no-deal Brexit vote would likely to be rejected, while an extension of Article 50 and second Brexit referendum seem to be favored.
  • Following May’s Brexit defeat, GBP had strongly rebounded as today’s market experienced an upbeat British Currency throughout the day, trading between (1.3055-1.3218).
  • Euro also remained upbeat against American Dollar following release a of better-than-anticipated euro zone industrial production
  • The American dollar index remained in the red for fourth straight day, mostly downsized by a strong Brexit bias, residing at 96.71, despite a robust US durable goods orders data widely beating Wall St. estimation

Another landslide defeat for May Brexit, GBP and EURO rebound winded over Brexit bias

Following another large defeat for Theresa May’s amended Brexit on Tuesday, the British Currency remained upbeat alongside Euro throughout Wednesday (March 13th), while crude oil reached 4-months high and Australian dollar dips after release of poor consumer sentiment data.

After yesterday’s defeat, the UK Lawmakers would likely to reject a no-deal Brexit possibility. Looking ahead, an extension of Article 50 would be talking point, although multiple analysts had been quoted saying that the UK economy would have been in daedal distress when it comes to a second Brexit referendum and an extension of Brexit deadline, as EU Commission would more likely to know what exactly UK lawmakers were looking for.

Without setting proper terms, an extension would more likely to last for few months to even years and a resignation of PM May would eventually come into play. Whatever happens, the outlook for Great Britain Pound appeared to be uncertain despite today’s robust turnover. So far, the British currency had posted a gain of 1.12 percent to 1.3220, and market volatility was relatively lower than yesterday.

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GBP/USD daily price chart

GBP/USD daily price chart

Catapulted by the Brexit bias, the US dollar index remained weaker, falling for fourth straight day into 96.69, while the EUR/USD surged into 1.1311, posting a gain of 0.22 percent so far. Apart from that, domestic challenges in Australia had once again haunted the consumer sentiment, as it dropped over 4.8 percent, remarking its lowest level since September 2015. Despite a gloomier outlook, the Australian dollar had also gained 0.12 percent to 0.7087, bulled by a stronger Great Britain Pound.

EUR/USD daily price chart

EUR/USD daily price chart

AUD/USD daily price chart

AUD/USD daily price chart

Bottom Line

Today’s (March 13th) market was largely catalyzed by a stronger Pound which gained over 152 pips so far in the intra-day trading, residing at 1.3225 (GMT. 16.00) and the American dollar was mostly lower against a gauge of global currencies, while emerging market currencies had also gained against the American currency.

Today’s US durable goods order data remained widely overshadowed by another upcoming Brexit vote, as the DXY index so far lost 0.31 percent to 96.69 and the market would less likely to favor Great Britain Pound after the no-deal Brexit vote, as today’s market optimism of averting a no-deal Brexit would likely to be evaded by tomorrow and a stronger US dollar may appear following robust durable US goods orders and construction data.

Besides, the Australian dollar alongside Kiwis would likely to start tomorrow lower after tonight’s no-deal Brexit vote.

Read more on 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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