The Pound traded at $ 1.2880, stabilizes due to Brexit confusion and dropped 0.7% on Tuesday. Following is the GBPUSD fundamental outlook for 23 October 2019.
23 October 2019, AtoZMarkets – The pound sterling stabilized on Wednesday after falling overnight while Brexit was in the balance, with the UK Parliament still divided over how, when, and even the timing of Britain’s departure of the European Union.
On Tuesday, British legislators voted 329 to 299 in favor of Prime Minister Boris Johnson’s Brexit plan. But they are then opposed by 322 votes to 308 Johnson’s extremely tight schedule to complete the legislative process in three days.
GBPUSD Fundamental Outlook
It is soon up to the EU to decide whether to extend Britain’s 31 October deadline for leaving the bloc. Yet it is to be hoped that Britain can avoid the worst-case scenario of leaving the EU without any agreement in place. Investors are too on the lookout for signs of a thaw in the US-China trade war, which has proven to be a significant risk for financial markets and global economic growth.
Junichi Ishikawa, Chief foreign exchange strategist at IG Securities said: “The pound will adjust in a narrow range for the moment. The risk of a no-deal Brexit has decreased, but there are still political uncertainties.”
The pound traded at $ 1.2880, stabilizing after falling 0.7% on Tuesday.
Pound Falls As Commons Reject Timetable
The pound sterling after the defeat of the government in a vote on the Brexit calendar, decreasing the possibility. That the UK will depart the EU before the end of this month. The GBPUSD fell 0.2% at 1.2847 at 12:06 AM ET (04:06 GMT).
In the absence of any significant event and economic data in Asia today, traders focused on news in the UK. Legislators rejected Prime Minister Boris Johnson’s plan to accelerate his Brexit deal in the UK. Parliament.
“For now, it seems the market still expects it to be a setback, but not a fatal failure, to a negotiated Brexit,” said Jeremy Stretch, head of the G-10 monetary strategy at the Canadian Imperial Bank of Commerce. “There has not been a rapid rise in no-deal pricing for now.”
The vote means that it is almost impossible for Johnson to ratify his agreement by next week. The risk of a non-agreement scenario has also been largely neutralized. Yet the government had already won a first vote on the legislation of the agreement to progress. Traders also continued to monitor the situation on the Sino-US trade front. But no major news is expected before representatives of the two countries meet at the summit of the Asia-Pacific Economic Cooperation in Chile in the mid -November.
Moreover, Trump and his Chinese counterpart Xi Jinping could sign the first phase of a trade deal at the summit. The US dollar index following the greenback versus a basket of other currencies increased by 0.1% to 97.328.