Brexit was the name of the game in Tuesday currency trading, with reports of possible delays to the fast-approaching deadline and a second referendum driving the British pound to its highest level since September at its peak.
“There is one story in Europe today and that is Brexit,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.was the best-performing G-10 currency on Tuesday, initially boosted by reports that Prime Minister Theresa May will rule out a no-deal Brexit in response to the threat of revolt by 15 ministers.
Meanwhile, local reports indicate that May will commit on Tuesday to having a vote on her Brexit deal on March 12. If that vote is rejected, then a vote on whether Parliament would support a no-deal Brexit on March 13 would follow, and if that is voted down, lawmakers would weigh in on extending article 50 on March 14.
Naeem Aslam, chief market analyst at ThinkMarkets, said May’s recent speeches in parliament have amplified uncertainty around her Brexit strategy. “She is changing direction like a revolving door. She has pushed the fate of the country on the cliff edge,” he said in emailed comments.
Looks like a major top in EUR/GBP.