Theresa May on lookout as latest Brexit deal sinks

March 13, 2019

The latest Brexit vote has been lost, while the UK’s Annual Budget Release could cause more volatility.

The EURUSD climbed overnight after opening the session at $1.12438. The pair dipped to an opening hour low of $1.12424 before spending most of the session embarking on a march up towards $1.13. Late-session trading saw the euro peak at $1.13039 before coming back slightly. It is currently trading at $1.12889. The GBPUSD started strongly after opening at $1.31489 as Theresa May announced that the EU had agreed to some further concessions in the Brexit deal. This sent the pound to a high of $1.32868. It came off those highs slightly and was steady throughout mid-session trading. As news broke that legal advice suggested that the new Brexit deal was no different to the previous one, the pound began to sink. It plummeted to a low of $1.30033 late before bouncing off those lows. It is currently trading at $1.30745.

The Dow struggled overnight after opening at 25,677.64. The index climbed to an early high 25,769.46, where it remained steady for the next few hours. he back half of the day saw the decline set in for the Dow, as it fell to a low of 25,521.96 late in the day. It has come off those lows and is currently trading at 25,566.24. The Dax was the big loser for the evening, weighed down by the Brexit mess and uncertainty. The German index opened at 11,607.57 and climbed to an early high of 11,632.87. It quickly gave up those gains as it fell to a late low of 11,495.57 before closing at 11,516.40.

Another busy day awaits as Theresa May reels from the latest Brexit defeat. With the March 29 Brexit deadline fast approaching, the UK government is running out of options. The only options that are left on the table are a no-deal Brexit, a vote to extend the Brexit deadline or an entirely new general election with a new Brexit referendum likely to be called. A no-deal Brexit would mean that no deal would be in place between the UK and EU, throwing businesses into further uncertainty. Extending the deadline may be a pointless exercise if the EU has said that this is the only deal on the table. A whole new referendum would be a political disaster and divide the nation further as those that voted for Brexit would see that politicians are trying to circumvent the will of the people.

Data set for release today includes:

UK – Annual Budget Release

Japan – Tertiary Industry Activity

Europe – Italian Quarterly Unemployment Rate, European Industrial Production

US – Durable & Core Durable Goods Orders, PPI & Core PPI, Construction Spending, Crude Oil Inventories


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