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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: Trapped in a bull flag on 4H chart

EUR/USD's pullback from Oct.21's high of 1.1179 to 1.1106 has taken the shape of a bull flag on the 4-hour chart. A bull flag represents a pause which usually refreshes higher. A breakout would open the doors for 1.1320. A 4-hour close above 1.1134 would confirm a flag breakout.


GBP/USD: Modestly changed to 1.2915 amid fears of UK election

Despite mounting speculations of a general election in the UK, GBP/USD clings to 1.2915 during early Thursday morning in Asia. No major British data highlights the US economic calendar, trade/Brexit news as the key catalysts.


USD/JPY declines to 108.60 amid fresh risk aversion, all eyes on the ECB

With the recent uncertainty surrounding the UK’s politics crossing wires, USD/JPY steps back from the previous rise to 108.60 as Tokyo opens for Thursday’s trading session.


ECB Preview: Draghi's defense of his legacy may drag EUR/USD down

"The ECB is ready to do whatever it takes to preserve the euro." These famous words by Mario Draghi, President of the European Central Bank, are the centerpiece of his legacy.

Read more

Gold drops to $1,491 despite downbeat catalysts from Asia, Brexit uncertainty

Despite economic challenges from Asia and uncertainty surrounding the Brexit, Gold prices step back to $1,491 amid Asian session on Thursday. An active economic calendar, including ECB, will be the key.

Gold News

Forex Majors