- Sellers continue to lurk amid Hard Brexit fears and below estimates UK construction PMI data.
- Eyes on the UK Cabinet meeting and US durable goods release for fresh directives.
The GBP/USD pair recovery from 1.3025 lows fizzled once again near 1.3070 levels, as markets continue to weigh in the increased odds of a no deal Brexit after the UK Parliament rejected all the four indicative votes late-Monday. The Brexit stalemate extends, with only 10 days to go and hence, the bears retain control amid the ongoing Cabinet meeting and the recent comments by Chief EU Negotiator Barnier.
What to look for in the Cabinet meeting
Yohay Elam, FXStreet’s Senior Analyst notes: “(PM May) She will chair a lengthy cabinet meeting to decide what to do next, only ten days ahead of Brexit Day, April 12th. She will likely to try to find a way to pass her deal in a fourth vote, but it is hard to see a majority for it. Asking for a long extension or fresh elections are potential options, but she would struggle to muster support from Brexiteers that could quit the government. If she goes for a no-deal Brexit, her pro-Remain ministers such as Chancellor Phillip Hammond could quit. It’s a tough spot.”
Meanwhile, the below forecasts UK construction sector activity report also adds to the weight on the pound while the US dollar continues to benefit from the cautious tone in the European equities, as all eyes stay focussed on the details of the Cabinet meeting and the US durable goods release due later in the NA session at 1230 GMT.
GBP/USD Technical Levels
Share
