“GBP is chopping in a relatively narrow range around 1.32 as the market struggles to interpret the increasingly frantic developments in UK politics,” note AmpGFX analysts and summarise today’s price action:
“The GBP strengthened from its recent lows last week after the EU agreed to provide another two weeks for the UK to decide on a path, until 12 April. This appears to have made space for parliament to come up with an alternative to PM May’s deal, and/or reduce the risk of an accidental no-deal Brexit.”
“However, the gains have been muted as it remains unclear what path the UK parliament will take. The GBP seemed to strengthen on reports that ERG Chair Rees-Mogg might support May’s deal. However, it is not clear why the market would like this outcome.”
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