Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Brexit: May Unveils Plan B, FX Market Shrugs

Published 01/22/2019, 12:07 AM
Updated 05/14/2017, 06:45 AM

As my colleague Fawad Razaqzada noted yesterday, markets were relatively dull heading into the day’s marquee event, the release of UK PM Theresa May’s “Plan B” Brexit bill. Unfortunately, the “new” proposal did little to shake things up.

Despite an historic defeat of her previous deal, May merely made a few tweaks in yesterday’s revised proposal. The Prime Minister struck a more inclusive tone, emphasizing the importance of worker’s rights and the environment in an attempt to appeal to Labour lawmakers. In a nod to the EU, she offered to waive a settled status fee for EU citizens living in Britan. On the sticky issue of the Northern Irish border, May said only that she would hold further consultations to "find the broadest possible consensus.”

Even though Plan B looks remarkably similar to Plan A, some analysts suggest that the impending Article 50 deadline (a mere 66 days from now), could prompt some MPs to vote in favor of the revised bill rather than risk a no-deal “hard” Brexit.

You have to squint to see the pound’s reaction to the release, with sterling ticking up by about 20 pips against most of its major rivals. Broadly speaking, the pound remains in the middle of its recent ranges, with traders now turning their attention to the reaction from MPs and the EU ahead of another vote next week.

GBP/JPY Daily Chart

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.