The UK has inflation steady just below 2.0%, solid wages' growth, upbeat retail sales, and a not-that-dovish BoE, yet at the end of the day, nothing really matters. Brexit dominated trading, with the Pound moving sharply on each and every political headline that comes out from London or Brussels. Our chief analysts Yohay Elam and Valeria Bednarik discuss the scenarios, with the most likely scenarios for the main actors and more importantly, the Pound and other currencies.
Brexit or how to deliver the undeliverable
EU leaders have granted an extension to the Article 50 negotiating period, piling the pressure on the UK Parliament to agree a way forward on Brexit. What's been agreed? After a classic marathon evening of talks at the March European Council meeting, EU leaders have agreed to an extension of the two-year Brexit Article 50 negotiating period.
GBP/USD is trading back below 1.3200 as the Brexit uncertainty continues. On Wednesday, UK PM Theresa May officially asked for an extension to Article 50, to June 30th. She opted for a short delay of Brexit that would more time for Parliament to pass the Brexit deal. In a defiant speech to the nation, May blamed MPs for not doing their duty and approving Brexit.