Pound rises on talks of Brexit delay
The pound rose to as high as US$1.3099 on Monday, up 0.3% on the day. On Tuesday morning, the pound continued its ascend to US$1.3135.
The British pound rallied against the United States (US) dollar on Monday as traders turned optimistic on a possible delay on Brexit if Britain’s prime minister Theresa May fails to secure support in Parliament on her withdrawal agreement.
The pound rose to as high as US$1.3099 on Monday, up 0.3% on the day. On Tuesday, the pound continued its ascend to US$1.3135 at around 9.45am Singapore time.
Against the euro, the pound also rose 0.1% to 86.70 pence per euro on Monday but dipped by 0.25% on Tuesday morning, at 86.58 pence per euro.
The British parliament is due to vote on the Brexit amendments on Wednesday, and the developments will be a source of focus for traders.
The pound has regained some composure and have returned to the levels seen at the end of last month, following jitters on a ‘no deal’ Brexit that sent the pound crashing to lows of US$1.2773 against the greenback in the middle of February.
Theresa May says she needs more time to amend Brexit deal
On Sunday, United Kingdom’s (UK) Mrs May appealed for more time to be given to her to renegotiate the Brexit deal, suggesting that parliament may not be able to vote until around 2.5 weeks before the stipulated Brexit date of March 29th.
Business leaders and members of parliament (MPs) cried foul after the speech from Mrs May, and prompted for a delay on the Brexit deadline to avert a ‘no deal’ exit which will see Britain crashing out of the European Union (EU) without a deal.
Labour’s Brexit spokesman Keir Starmer called Mrs May’s move to delay the vote the ‘height of irresponsibility’.
‘Theresa May is recklessly running down the clock in a desperate attempt to force MPs to choose between her deal and no deal. Parliament cannot standby and allow this to happen,’ Mr Starmer stated.
The prime minister’s Brexit withdrawal deal was rejected last month, and she has been meeting with European leaders to fix the deal, primarily working on the concerns with the Irish ‘backstop’ plan.
Cooper amendment to postpone Brexit deadline could see the light, pound set to rally further
The Cooper amendment proposal, which seeks to prevent a ‘no deal’ Brexit by giving the government more time to reach a formal agreement with the EU, was rejected in January but it may be passed this time round as three government ministers have added their support.
Analysts expect the pound to appreciate if Mrs May fail to threaten the Parliament on a ‘no-deal’ situation.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Trading around Brexit
Find out how the UK’s exit from the EU continues to affect traders, and discover:
- The unique opportunities in a ‘hard’ and ‘soft’ Brexit
- The markets you should be watching
- Everything that’s happened so far
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.