MUFG analysts are expecting that the main focal point for markets this week will be on Wednesday’s votes in UK parliament on fresh Brexit amendments.
“Most notably, the updated Cooper-Letwin amendment which seeks to force the government to extend Article 50 if they can’t pass a Brexit deal by the 13th of March.”
“Reports indicate more optimism that Cooper-Letwin amendment may pass this time, after having been rejected at the end of Jan in its first iteration.”
“It could help lift cable towards 1.3300 level if passed. But, if MPs pass up opportunity to “take No Deal off the table” for the second time by voting down the amendment, market participants may not as forgiving with time quickly running out. It could see cable quickly falling back towards support from its 55-day moving average at 1.2850.”
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