Forex – pound slips to plan B May

© Reuters. – The pound sterling slipped on Monday, while the First british minister Theresa May is preparing its plan B for the Brexit, designed to break the stalemate in the Parliament by presenting proposals that should seek to obtain more concessions on the part of the european Union.

The GBP / USD is down 0.3% at 1.2833 at 05:01 ET (10: 01 GMT), while the EUR / GBP up 0.41% at 0.8859.

The pound sterling rose to a two-month peak estimated at 1,3001 Thursday, thanks to the growing confidence that Britain may avoid a “Brexit” without agreement, but was faced with a profit taking Friday.

May will make a statement in parliament to 15: 30 GMT, and will present a motion on the next steps that it proposes, after his divorce agreement on the Brexit has been rejected by 432 legislators in the 650-seat parliament last week.

In the course of the next week, legislators will be able to offer alternatives. They will discuss these projects on January 29, and their vote should indicate if some of them could get the support of the majority.

Attempts to reach a consensus with the labour party of the opposition have failed. May, should, therefore, strive to overcome 118 rebels in his own party and the democratic Party unionist – a small party of Northern Ireland which supports his government – with concessions from the EU.

A little more than two months of the due date of march 29, attached to the Brexit, the uk Parliament has not agreed on the manner in which he should leave the largest trading bloc in the world.

The different factions of legislators are supporting a wide range of options, including the departure without agreement and a customs union permanently, with the EU. In addition, a growing number of members, composed mainly of members who would prefer to remain in the EU, now support a second referendum.

The purchase of pounds sterling is not advised due to the uncertainty related to the Brexit, Monday said UBS Wealth Management, adding that the risk exposure of the british pound over the next three months was a way to avoid the volatility of the markets.

While an agreement could bring the book to 1.40 dollar, “in the case of “Brexit” hard, a lower limit should be around 1.15 taking into account the value already cheap the book of sterling,” said analysts at UBS in a note.

– Reuters contributed to this report.

Like this post? Please share to your friends:
Leave a Reply