UK pound strengthens on Brexit vote defeat

UK pound strengthens on Brexit vote defeat

On Wednesday, the UK currency managed to strengthen after a dive overnight when the British main legislative body overwhelmingly voted down the country’s Prime Minister Theresa May's Brexit agreement, thus contributing to uncertainties surrounding Great Britain’s withdrawal from the EU.

As a matter of fact, the currency pair GBP/USD hit 1.2862 having tumbled to 1.2667 late on Tuesday.

On Tuesday, the UK parliament voted 432-202 against her deal, which appears to be the worst parliamentary defeat for the country’s cabinet in recent UK history.

The UK pound had gone down over 1% versus the evergreen buck in the wake of the vote, before bouncing off because the sizable defeat for the country’s Prime Minister was making the United Kingdom pursue different options.

However, there’re also fears that the given result may provoke political upheaval, which could result in a disorderly Brexit.

As some financial analysts explained, while the margin of Prime Minister’s loss appeared to be a surprise, but the defeat itself was something financial markets had been pricing in for a long time. As a result, traders covered their short positions in the UK currency following the vote.

March 29 turns out to be the deadline for Brexit, although with the clock rapidly ticking down an extension of the deadline currently seems more probable.

The UK pound was nearly intact versus the common currency. The currency pair EUR/GBP demonstrated a reading of 0.8874.

The euro stood still versus the greenback. The currency pair EUR/USD showed 1.1419.

As for the Japanese yen, it surged a bit versus the evergreen buck. The currency pair USD/JPY went down by nearly 0.12% being worth 108.53.

Gauging the evergreen buck’s actual purchasing power against its main peers the USD index tumbled by about 0.18% being worth 95.50.

Similar

Will the CPI Crash the USD?
Will the CPI Crash the USD?

 The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!

USD and GBP Traders Await Big Moves
USD and GBP Traders Await Big Moves

The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.

Latest news

Gold Rises as Central Banks Buy More
Gold Rises as Central Banks Buy More

About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.

US Evades Default This Time
US Evades Default This Time

Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!

USD Gains Momentum
USD Gains Momentum

The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera