- We continue to trade through the Brexit angst and forever conflicting headlines.
- EUR/GBP is now UP and en route to test the 50% retracement of today’s drop from 0.8742.
- EUR/GBP is currently trading at 0.8693 from a high of 0.8742 and a low of 0.8655.
EUR/GBP had been trading at the lowest levels since April this year when the price registered at 0.8621 low following signs that a Brexit deal has been agreed between the EU and PM May who was scheduled to get a draft sign off today before presenting it to Parliament to vote on – all steps in the right direction and the pound went very bid. Cable rallied all the way from 1.2872 to a high of 1.3047.
However, since then, we have had a number of headlines through the wires showing how much opposition there will be to May’s Brexit proposal:
“The backstop will come in the form of a temporary UK-wide customs arrangement, with specific provisions for Northern Ireland, which go deeper on the issue of customs and alignment on the rules of the single market than for the rest of the UK,”
RTÉ News’ Europe Editor Tony Connelly wrote.
Reality check:
Since then, have have had the British Lawmaker Rees-Mogg said PM May’s deal failed to meet the promises of the conservative manifesto and added that he would vote against it. Additionally, former Foreign Secretary Boris Johnson said that he hoped that the Cabinet and the Parliament would block the deal. The UK Liberal Democrat Leader says that the PM will not get deal through Parliament. Jeremy Corbyn will vote against Brexit deal saying that it does not meet Labour’s six tests and fails to work for the country and Iain Duncan Smith saying the writing is on the wall for Theresa May. The DUP Deputy leader Dodd is also sceptical that an EU / UK deal will be signed off today by PM May’s Brexit cabinet.
Today’s Brexit headlines
- EU and UK negotiators agree text for Irish border – RTÉ News.
- UK PM May expected to present draft Brexit deal on Wednesday.
- The Times’ Sam Coates: Business groups to be briefed on Brexit tomorrow.
- BBC’s Kuenssberg: Cabinet to sign off a text of divorce deal tomorrow.
- DUP Spokeswoman: We have to wait to see a deal, our red linesare well known.
- UK: Cabinet will meet at 2pm tomorrow to consider the draft agreement.
- Irish ForMin Spokesman: Negotiations between EU and UK on a withdrawal agreement have not concluded.
EUR/GBP levels
Should Brexit hit the fan, the July low at 0.8799 represents an upside target, followed by the 200- and 55-day moving averages at 0.8834/56. Analysts at Commerzbank warned that failure at the 0.8691/80 April and current November lows on a daily chart closing basis could trigger a swift drop to the April low at 0.8620. Below there, 0.8527 and then 0.8330 will represent the 161.8% fibo extension 0.8330 lows. Before then, we have the 123.6% extension at 0.8511.
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