Despite an unending series of Parliamentary setbacks for Prime Minister Boris Johnson’s attempt to clinch the UK exit from the European Union, Sterling has retained almost all of its gains of the past ten days, suggesting that his Brexit deal will eventually be approved.
The pound was trading at 1.2970 (3:02 EDT in New York) having reached 1.3013 earlier in the session its highest since May13th. Starting from its close on October 9th at 1.2205 the British currency has risen 6.3% against the dollar.
Government ministers have become increasingly confident that they have the 318 votes to pass the Brexit agreement which won EU approval last week. Various media counts of the successful margin range from one to five.
The Conservatives have been prevented from a specific vote on the Brexit agreement by a number of secondary bills and by rulings from the Speaker of Parliament John Bercow denying permission to bring the bill to the floor.
Mr. Bercow rejected a government try for debate and vote on Monday. Two potential amendments on a customs union for the entire UK and a second nationwide referendum on departure are set for consideration.
Were the first to pass the government might accept the amendment to its Brexit bill, pass the deal and go to a general election. If the Tories won a majority Mr. Johnson could revoke the customs union and proceed with the already passed Brexit bill.
Were the referendum amendment to pass Mr. Johnson could scrap the Brexit bill and proceeded to a general election.
Polls suggest that Mr. Johnson and the Conservatives would win an election against the Jeremy Corbyn led Labor and the Liberal Democrats.
If there is a general election before or immediately after Parliament passes the Brexit bill it would be fought almost exclusively over the departure from the EU.
Labour has come out in favor a second exit referendum, though a number of its members represent constituencies that voted in favor of departure in the original June 2016 referendum and are set to join the government when the bill reaches the floor.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD recovers to 1.1150 ahead of US PCE inflation data
EUR/USD is recovering losses to trade near 1.1150 in European trading on Friday. The pair trims softer French and Spanish inflation data-led losses amid a cautiously optimistic market mood and a wobbly US Dollar, as US PCE inflation report looms.
GBP/USD keeps losses below 1.3400, awaits US PCE data
GBP/USD is off the lows but stays pressured below 1.3400 in the European session on Friday. A modest US Dollar uptick and a mixed market sentiment remain a drag on the pair. The focus now shifts to the high-impact US PCE inflation data for fresh impetus.
Gold price pulls back from record high ahead of US PCE Price Index, bullish bias remains
Gold price attracts some sellers on the last day of the week and retreats further from the all-time peak, around the $2,685-2,686 region touched on Thursday. The downtick is sponsored by the emergence of some US Dollar buying, which tends to undermine demand for the commodity.
US core PCE set to show continued disinflation trend, reinforcing Federal Reserve easing cycle
The core Personal Consumption Expenditures Price Index is seen rising 0.2% MoM and 2.7% YoY in August. Markets have already priced in near 50 bps of easing in the next two Federal Reserve meetings. A firm PCE result is unlikely to move the Fed’s stance on policy.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.