British Parliament rejects no-deal Brexit, pound rises 2%
The pound rose by more than 2.0% on the rejection of the ‘no-deal’ exit, gaining to a peak of US$1.334 from Wednesday morning’s US$1.309.
The British Parliament rejected leaving the European Union (EU) without a deal on Wednesday, voting a narrow 312 to 308 in favour of a motion that ruled out a no-deal exit.
Although the approved motion has no binding authority to cast things into stone, it was seen as a political assertion due to an internal rebellion from members of United Kingdom’s (UK) prime minister Theresa May’s own Conservative Party.
Mrs May said going forward, lawmakers will have to agree on how to handle things before an extension could be reached.
The pound rose by more than 2.0% on the rejection of the ‘no-deal’ exit, gaining to a peak of US$1.334 from Wednesday morning’s US$1.309.
Extension of March 29 deadline the likeliest scenario
The UK has a few options now: To delay Brexit, to pass Mrs May’s deal in the last minute, or ignite another referendum.
Britain would have to justify with reasons to the EU why it wants to extend talks for Brexit, as well as get an agreement from all the bloc’s 27 members on its plans to delay its exit.
Investment banks are giving their views on the Brexit outcome, as the end line draws near.
‘We continue to see a 55% chance that a close variant of the prime minister’s Brexit deal is eventually ratified, after a three-month extension of Article 50,’ Goldman Sachs said in a Reuters report. The bank gave a reversal of Brexit a 35% probability and a no-deal Brexit at 10%.
EU chief Brexit negotiator Michel Barnier told members of the European Parliament on Wednesday it is now UK's responsibility to ‘tell us what they want for our future relations’. ‘That is the question that needs to be posed to which we expect an answer. It will be a priority even before the question of an extension. Negotiations on Article 50 are finished.'
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.