In less than 7-hours, the House of Common is expected to settle the 'Brexit Bill' saga as the final vote clocks at 20:00 GMT. Tonight, the United Kingdom would be in the spotlight as doors could be opened towards a sterling sell-off across the board if the decision is not digested accordingly by traders and investors. On the other hand, any delays or changes may be considered positive for the pound.
Key Notes
GBP/USD back above 1.2500, but for how long?
GBP/USD went over the edge 3-weeks ago as the currency pair was about to collapse below the critical 1.2000 support. However, on the last hour, the pound survived due to a "Global Britain" speech from PM May that served as the soft tune to calm down market anxiety. Hence, a pro-business and elegant political-oriented statement added 770-pips to alleviate trading tensions.
If later the Brexit Bill finds no more obstacles, the stage is set to start 'negotiations' with the EU in a process that can take up to 2-years. A key ingredient on the table is whether to let the European Union nationals to remain in the UK, this at the end of the day is one of the most important principles inside the euro zone; Free-movement.
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