EUR/GBP drops further to 0.8650 ahead of another Brexit vote

• Pound remains firm across the board and hits fresh highs.  
• EUR/GBP erases most of yesterday’s losses, back near 0.8550.  
• UK: House of Commons to vote on a ‘no deal’ motion.

The pound rose further during the last hours ahead of another Brexit related vote in the House of Commons. The EUR/GBP pair broke below 0.8575 and fell to 0.8553, hitting a fresh daily low.  

As of writing, trades at 0.8560, 90 pips below yesterday’s highs. Despite all the Brexit drama, EUR/GBP still remains near multi-month lows and today close to the 0.8530/35 key support area. Volatility could remain low, even during the vote at the UK Parliament.  

If, as expected, the vote is rejected today, there will be another vote on Thursday on the extension of Article 50. In the case that passes, the other 27 members of the European Union would have to support the extension. Today the EU’s chief negotiator Michel Barnier said that the risk of a no deal has never been higher.  

The EUR/GBP holds a negative intraday tone and also on a wider perspective. But Brexit related events are likely to limit the downside and continues to be the main risk.