Brexit Update And What Is Happening With The Pound/Euro

TL;DR

Brexit uncertainty continues to influence the movement of the pound, with the possibility of an extension and a second referendum gaining traction, leading to increased pound buying.

Transcript

my name is Craig LM senior market analyst at Honda and today we're going to talk about euro sterling now it's quite clear that sterling is one of the bigger movers in the markets right now a simple reason being that we do have a major political story unfolding here in the UK where vast fastly approaching brakes it day which is now around a month aw... Read More

Key Insights

• 🤝 Sterling is experiencing significant movement due to ongoing Brexit uncertainty and the narrowing down of options to Theresa May's deal, no deal, and a potential extension.
• 🤝 The delay in the vote on May's deal is due to her seeking further concessions from the EU.
• 🤝 The pound has been showing strength recently as no deal becomes less likely and the opposition Labour Party adopts a second referendum stance.
• 🎚️ Technical support and resistance levels in the pound's value have shifted, with previous support becoming resistance and potential historic support levels at 83-84.

Questions & Answers

Q: How has Brexit uncertainty impacted the pound's value?

Brexit uncertainty has led to increased volatility in the pound's value. Recently, the pound has seen gains as no deal becomes less likely and the Labour Party's adoption of a second referendum stance increases market confidence.

Q: What are the three options currently on the table for Brexit?

The three options currently being considered are Theresa May's negotiated deal, a no-deal Brexit, and a potential extension of Article 50 to allow more time for negotiations.

Q: Why did the vote on Theresa May's deal get delayed?

The vote on May's deal was delayed because she had not fully agreed to terms with the EU. As a result, she is planning to bring the deal back for a vote in mid-March after potential votes on No Deal and an Article 50 extension.

Q: How has the pound's value against the euro been affected by recent developments?

The pound has broken multi-year highs against the euro, indicating market optimism regarding Brexit negotiations. However, the market's tendency to preempt developments means that there is still potential for volatility and surprise twists.

Summary & Key Takeaways

• Sterling is experiencing significant movement due to ongoing Brexit uncertainty, with options narrowing down to Theresa May's deal, no deal, and a potential extension.

• The delay in the vote on May's deal is due to her seeking further concessions from the EU, leading to a proposed vote in mid-March and potential votes on No Deal and an Article 50 extension.

• The pound has been showing strength recently as no deal becomes less likely and the opposition Labour Party adopts a second referendum stance, causing traders to buy up the pound.