- Major support for the Brexit deadline extension supersedes uncertainty surrounding PM May’s political command and/or her third proposal for a vote.
- Irish backstop keeps playing its role to restrict the Brexit proposal acceptance.
The British Pound (GBP) is taking bids around 148.20 versus the Japanese Yen (JPY) during early Monday. The GBP/JPY pair is under pressure due to recent headlines from the UK politics challenging Theresa May but has managed to remain up on expectations of an orderly British exit from the EU.
Ever since the UK members of parliament (MPs) voted to extend the Article 50 deadline from March 29 on Thursday, speculations surrounding an orderly Brexit have gained momentum. The British PM Theresa May said she could request the EU to allow for three months of extension if her re-revised Brexit proposal gains parliament support.
While the majority of lawmakers were favoring the developments, a bunch of them were preparing to oust PM May from her seat. In doing so, some 40 MPs propose May to offer her resignation by April in exchange for their support for the third Brexit proposal.
Additionally, the UK Telegraph also came up with a report that ex-foreign minister Boris Johnson urged Eurosceptic MPs to reject Theresa May’s Brexit deal for a third time if it is put to the vote this week as he warns it gives the EU “an indefinite means of blackmail” against the UK. BBC also ran a story mentioning that the UK’s Chancellor says Theresa May’s third Brexit proposal won’t be up for a vote unless she has support from the Irish political frontier Democratic Unionist Party (DUP).
Next up in investors’ radar will be developments surrounding whether the British PM can manage to opt for voting on her third Brexit proposal on Tuesday or British lawmakers plot to topple her from the PM seat.
GBP/JPY Technical Analysis
In spite of repeated failures to surpass a downward sloping trend-line joining September high to November high, at 149.00 now, the quote remains well beyond 146.70 and 200-day simple moving average (SMA) figure of 144.75.
Given the pair’s ability to conquer 149.00, 150.00 and 150.70//75 could lure the buyers.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD holds above 1.2350 after UK PMIs
GBP/USD clings to modest daily gains above 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.