(14 MARCH 2019)DAILY MARKET BRIEF 1:Sterling in torment

(14 MARCH 2019)DAILY MARKET BRIEF 1:Sterling in torment

14 March 2019, 13:42
Jiming Huang
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Currently trading at 0.85370, EUR/GBP is valued at a 22-month low, heading along 0.85510 short-term. Parliament is expected to start another Brexit vote at 17:00 GMT. The battle between to impose a negotiated Withdrawal Agreement continues. Time is running short: an extension of negotiations would need to be approved by the European Union during its summit next Thursday. An extension until 30 June 2019 might be agreed. We question whether Prime Minister Theresa May’s Withdrawal Agreement or any alternatives are even feasible. GBP-positive scenarios are either an acceptance of the existing Withdrawal Agreement or of an extension.

Two days of intense debates were capped yesterday in defeat for the government. UK Attorney General Geoffrey Cox warned that the country could remain stuck in the bloc’s customs union. Last night Parliament voted not to allow a hard Brexit – but this was non-binding. Lawmakers will be focused on extending the divorce period, accepting May’s deal or staying in the EU.

By Vincent Mivelaz


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