Register
Login:
Share:
Email Facebook Twitter


London South East Natural Resources Briefing webcast: #Emmerson #Alba #Condor Gold #Gold analysis
Angus Energy in talks to buy 'transformational' gas asset in North England


Forex News


Sterling headed for best week since January after Brexit votes

Fri, 15th Mar 2019 10:17


* Sterling up 1.7 pct vs dollar this week

* Bulls still nervous as May prepares for third vote

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv

LONDON, March 15 (Reuters) - The British pound was unchanged on Friday at the end of its best week since January, as investors waited for next week's parliamentary vote on Prime Minister Theresa May's deal to exit the European Union.

Sterling has rallied this week - it is up 1.7 percent against the dollar - after British lawmakers voted against leaving the EU without a deal and backed a delay to the March 29 exit date.

The vote against a no-deal Brexit was non-binding, but investors believe Britain will now avert a disorderly Brexit that would severely damage its economy.

May has said she will hold another vote next week on her deal, although lawmakers have already rejected it twice. She hopes to use the threat of a longer delay to Brexit to persuade eurosceptics in her party to back her.

"The market has already shifted significantly to price out a no-deal Brexit," said BNP Paribas economists. The bank's analysis shows short sterling positioning has been unwound to +10 from -33 at the beginning of the year. A -50 would mark the biggest short position possible, +50 the largest long.

The bank also noted that the probability of a rate increase this year had risen to 50 percent from 24 percent in February, according to money markets.

"As this suggests markets may be vulnerable to any downside surprises, we do not yet see attractive risk/reward to enter structural long GBP or bearish UK rates outright positions," BNP Paribas analysts wrote.

The pound, which has traded between $1.2945 and $1.3380 this week, was unchanged on Friday at $1.3240. It was also little changed against the euro, losing 0.1 percent to 85.50 pence per euro.

Uncertainty remains for sterling. All 27 EU member states must agree to a request for a Brexit extension, and it remains unclear when and on what terms Britain will leave.

"Despite the increased risks facing rebel Conservative MPs, we doubt that sufficient numbers will fall back into line to pass her deal given entrenched hard line opposition," MUFG analysts wrote on Friday. (Reporting by Tommy Wilkes, editing by Larry King)



Related Shares:


Next Article: BMW still preparing for no-deal after UK parliament backs Brexit delay

Back to Forex News


Share Price, Share Chat, Stock Market news at lse.co.uk
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at lse.co.uk




Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.