EUR/GBP spikes in the open as Brexit Super Saturday fails to impress

EUR/GBP is starting out on the bid, some 0.30% higher in the io following the weekend's headlines surrounding Brexit. EUR/GBP is currently trading at 0.8621 having rallied in the open between a low of 0.8611 and 0.8624. 

Super Saturday did not live up to its name, and instead, we are back to square one with respect to Brexit. MP’s voted 320 “Aye” and 306 “No” for the so-called Letwin Amendment on the weekend, a sitting in the UK Parliament that has not happened since the height of the Falklands War in the early 1980s.

Johnson tactically withdrew plans for the vote on Saturday and in so doing there is yet another delay which as forced the Benn Act into play which is another piece of law intended to avoid a no-deal exit.

Brexit up in the air

Failure to pass the agreement to withdraw by 11 pm on 19th October triggered the Act’s ruling that the UK had to issue a letter requesting an extension to the Brexit Deadline (until 31st January). However, Johnson did not sign the letter, and there lies the twist.

"This continued delay and uncertainty is likely to weigh on GBP and UK yields, but not undermine them. More appropriately, the delay will impede recent gains. GBP/USD is therefore likely to remain in a volatile 1.25-1.30 range until some sense of how likely Parliamentary actions become. Once again we shall attempt to inform you of how matters develop and what implications they may have," analysts at Westpac explained.

EUR/GBP levels