(23 NOVEMBER 2018)DAILY MARKET BRIEF 2:Sterling rebounds to decline

(23 NOVEMBER 2018)DAILY MARKET BRIEF 2:Sterling rebounds to decline

23 November 2018, 13:46
Jiming Huang
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The pound rose by 0.77% following yesterday’s announcement of a Brexit deal, but there is a long road yet ahead to ratification. The 27 European Union member states will vote on Sunday 25 November: a yes is expected, even though Spain is threatening to veto over Gibraltar. Critically, the final word remains in the hand of the UK Parliament, which will take the final decision sometime thereafter. Accordingly, we expect GBP/USD to decline slightly, approaching the 1.2790 range. The Political Declaration, approved yesterday, remains a political, and not a legal-binding document, thus it does not engage either the UK or the EU to any engagement in the future. The document gives some hints towards the areas where both counterparts will have to work on following the divorce.

By Vincent Mivelaz


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