Brexit deadlock remains. Will Prime Minister Theresa May maintain political support and win concessions from the EU? We’ll see at the next vote, scheduled for 27 February. We expect GBP/USD to decline further as Brexit fatigue weighs on traders. Currently trading at 1.2834, GBP/USD is heading along 1.2810 short-term.
Following fruitless negotiations with EU President of the Commission Juncker and EU President Tusk in Brussels, May faces resentment from lawmakers, who are concerned about the upcoming decision: either back May’s deal, vote for a “long” extension of Article 50 and try to get a better deal, or reverse the exit decision (i.e. second referendum, unilateral withdrawal of Article 50). Today’s government motion will ignore a no-deal scenario, a move that could threaten May’s leadership in the Conservative party. Once again, she risks. a no-confidence. Still, today’s Parliament session will not be a game changer – that will likely come in two weeks.
This report has been prepared by AC Markets and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by AC Markets personnel at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.