Aila Mihr, analyst at Danske Bank, points out that yesterday, GBP suffered from rising political uncertainty and likely also profit taking (from stretched levels) ahead of today’s vote on the UK House of Commons.
Key Quotes
“Previously, we thought that the so-called Cooper amendment was likely to pass in parliament, but following yesterday’s political development, it now seems much more uncertain.”
“We expect EUR/GBP to remain in the 0.86-0.89 range short term and stress that a break below 0.86 might require further reduction in the ‘no deal’ Brexit risk than what the Cooper amendment provides.”
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