GBP: 2 Possible Outcome For Indicative Votes; Pound Volatility Set To Remain Elevated – MUFG

0

Parliament voted to hold indicative votes on Wednesday, March 27th. How can this play out for the pound?

Here is their view, courtesy of eFXdata:

MUFG Research discusses the latest Brexit vote developments.

“The indicative votes will not be legally binding on the government but will increase pressure to implement the will of Parliament if it helps to avoid a disorderly “No Deal” Brexit. We see the two most likely outcomes as i) there is no clear majority for a single outcome which would extend the current deadlock and ii) that a majority of MPs back a softer Brexit,” MUFG notes.

At the current juncture it is highly uncertain how things will play out, but the market is continuing to take an optimistic view that Brexit is heading towards a longer delay and a softer outcome which has encouraged a stronger pound at the start of this year. At the same time though the rising risk of a general election and a “No Deal” Brexit remain potential banana skins for the pound in the near-term. We are more confident that pound volatility should remain elevated,” MUFG adds.

For lots more FX trades from major banks, sign up to eFXplus

By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

Comments are closed.