Parliament votes this evening to authorize PM May to seek an extension to Article 50. The EU will need to approve it and there are signs they will push back, but FX traders are currently focused on the UK side of the deal. Parliament voted against a no-deal Brexit yesterday and the pound surged in the third day of aggressive swings. GBP is the strongest currency so far this week. What happens next could be even more explosive with talk that the ERG could support May's deal. Better US economic data continued to fuel broader optimism. The Premium GBP trade for subscribers was closed for 160 pips right before yesterday's vote and a new one was filled at the bottom of the subsequent pullback. Details of our existing LONG oil trade entered in Feb are found below-- currently 400 pts in the green.


The Brexit drama continued with a more than 300-pip rally in cable on Wednesday as parliament voted against a no deal Brexit. Cable hit the highs on reports that the ERG is now ready to back May in a third meaningful vote next week. The DUP will also hold fresh talks with May. That enthusiasm was tempered somewhat by indications that not all ERG members would switch their votes.

Technically, the break above 1.3350 pushes the pair to the highest since June 2018. A close above that level and especially a weekly close above it would be particularly positive. For full technicals, We will send Ashraf's GBP analysis on Real Vision TV shortly.

Elsewhere, market moves were less dramatic but still meaningful. Both oil and the S&P 500 hit multi-month highs in a sign of renewed optimism. US Crude is at 58.67, with details of Ashraf's oil trade below.


In terms of data, US core capital goods orders rose 0.8% compared to 0.2% expected. Construction spending also climbed 1.3% compared to the 0.5% forecast. Both should push Q1 GDP forecasts higher.

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.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD trims Pound-related gains, back to 1.1150/60 price zone

The EUR/USD pair got a nice short-lived boost from Brexit optimism, although it quickly trimmed gains, as PM May failed to convince the markets. Failure near 1.1200 left doors opened for a retest of the yearly low at 1.1110.


GBP/USD nears 1.2700 as Brexit optimism fades

The GBP/USD pair keeps easing from daily highs and approaches the 1.2700 figure, down from 1.2814 as UK opposition wasn't convinced by PM May 'new' Brexit deal proposal.


USD/JPY extends gains above 110.50, to highest in two weeks despite US Dollar weakness

The USD/JPY broke above 110.25 earlier today and accelerated to the upside. During the American session printed a fresh daily high at 110.63, the strongest in two weeks. 


Anti-EU populism rise not priced in the EUR, European election could hit Euro

The European Union is holding its Parliamentary election next Sunday, May 26th and the impact of this political event seems to be underpriced by currency markets. 

Read more

Gold struggles pull away from May lows, continues to trade near $1270

The XAU/USD pair closed the first day of the week virtually flat below the $1280 mark and came under a renewed pressure on Tuesday as the upbeat market sentiment didn't allow the precious metal to find demand as a safe-haven

Gold News