- its all eyes on sterling at the start of this week with the Brexit vote this week and there are concerns that the deal will be defeated - Subsequently, sterling dropped on the open today.
- MPs will pass their verdict on Prime Minister Theresa May's plan to take Britain out of the European Union on 29 March this Tuesday.
Cable opened with a bearish gap of over half a buck as traders get positioned for a bumpy ride this week. MPs will pass their verdict on Prime Minister Theresa May's plan to take Britain out of the European Union on 29 March this Tuesday.
Here is some information you should know if you intend trading the event.
Firstly, the vote will be held on Tuesday evening, following a full day of debate in the Commons - the time of the vote will be announced in due course.
This is THE vote and if the deal is voted down, its got to be one of two things:
- The UK will either leave the EU on 29 March without a withdrawal agreement, or;
- The departure date will be delayed.
However, should MPs support the deal, a permanent deal will then be negotiated while things will stay broadly as they are until December 2020 following Brexit that will occur on 29 March.
Markets suspect that despite the UK's government minister's attempts to persuade the EU into making concessions in order to get a deal through Parliament and acceptable to the MPs who voted against it in January, the deal will indeed be voted down on only minor tweaks to the existing agreement that was so badly defeated last time around.
However, while an initial punt to the downside in the pound on such sentiment is taking place, considering that MPs were promised a vote on whether the UK should leave without a deal or not, which would probably happen the following day, such an outcome would support the case for a delay to Brexit from the EU, so long as they do not back a no-deal Brexit - that vote will likely be on Thursday.
However, should May only lose by a small margin, the EU might be inclined to offer the UK some more time to get it over the line - The next EU summit in on 22 March which is where May would likely use as a platform to spur-up further support before she takes it back to The Commons for one final shove to the line.
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
AUD/USD holds ground as RBA leaves the door open for a hike
Tuesday's session witnessed the Australian Dollar clearing losses against the US Dollar following the release of the hawkish RBA minutes and the US JOLTs figures from May. For the USD, the confidence of Jerome Powell on inflation coming back down sooner on the prospects of a cooling labor market weakened the Greenback.
USD/JPY extends gains near 161.50 ahead of US data, FOMC Minutes
The USD/JPY pair trades on a stronger note near 161.40 after reaching a new high for this move near 161.75 during the early Asian trading hours on Wednesday. Market players remain focused on the possible foreign exchange intervention from the Bank of Japan, which might cap the pair’s upside.
Gold falls amid falling US yields, soft US Dollar
Gold price slid during the North American session as market participants digested Federal Reserve Chair Jerome Powell’s comments at a European Central Bank forum in Portugal. Powell turned slightly dovish, yet US Treasury yields remained firm. The XAU/USD trades around $2,324.
Ethereum ETFs set for $5 billion inflows despite ETH Foundation's continuous sales
Ethereum is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Benefit of the doubt: US consumer confidence and elections
Despite widespread expectation for the US economy to be in recession in 2024, that fate has been avoided thanks to a resilient consumer. Yet it is difficult to square this undaunted spending with consumer confidence and sentiment readings that are lackluster at best.