This article was first published on FXCC Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
The chaos and confusion currently on display inside the U.K. House of Commons, was replicated in the market for the U.K. pound versus its peers, during Thursday’s trading sessions. All sterling base pairs traded in tight ranges versus their counter currencies, as analysts and FX traders struggled with the complexity of the voting patterns and the meaning of the various votes.
By 18:30pm U.K. time, one decisive decision had been reached; the U.K. Parliament will be requesting a three month extension from the E.U. in order to push back the exit date, past the official March 29th legal deadline. However, sterling failed to rise, after the European Commission immediately issued a response to the vote, declaring that the E.U. would put its own interests first, when considering the request. At 19:15pm GBP/USD traded down 0.47% on the day at 1.322, still circa 320 pips above the 200 DMA, a level that was tested earlier during the trading week. The majority of sterling base pairs traded in ext...
To keep reading this article, please navigate to: FXCC Blog.