14.03.201912:53 Forex Analysis & Reviews: Brexit: the UK will ask the EU to delay the withdrawal of its membership

The pound rose strongly against the US dollar after it became known yesterday that the result of voting in the British Parliament was the decision to exclude the withdrawal from the EU without an agreement under any circumstances. This was quite expected, but traders still took this news with particular optimism, since it virtually eliminates the likelihood of the UK leaving the EU indiscriminately. The decision against Brexit without an agreement was made by 321 votes to 278.

Immediately thereafter, British Prime Minister Theresa May said that the obvious majority opposed withdrawal without a deal. But at the moment, the existing agreement is the only one that is proposed by the EU for approval, and there will be no other version of the agreement. May also noted that in the case of today's extension of the UK exit from the EU, a longer "hanging state" would have a negative effect on the economy.

Today in the Parliament of Great Britain, a vote will be held to request a postponement of Brexit from the European side. It is expected that the EU countries will satisfy the request, but this can be known only within the framework of the EU summit, which will be held next Thursday. The entire emphasis will be shifted to how long the delay will be, as well as to its conditions.

It should be understood that all EU countries should approve the postponement of the UK's exit from the trade and political bloc. Only after this can a new date be appointed for Brexit, which is currently scheduled for March 29th.

Also, do not exclude other options for the development of the situation, which, although unlikely, remain. A number of experts do not rule out the development of a new agreement, no longer under the leadership of Theresa May, who will maintain closer ties with the EU than suggested by the Prime Minister. Do not forget about the likelihood of a second referendum on membership in the block.

As for the technical picture of the GBPUSD pair, the demand for the pound may decrease in case of an unsuccessful attempt to break through and consolidate above the resistance of 1.3300, which will lead to a downward correction to support 1.3215 and 1.3155. In the case of a larger bullish move, yesterday's high in the 1.3375 area will indicate a further increase in the pound with a test of new resistance levels of 1.3440 and 1.3520.

The euro rose slightly against the US dollar after yesterday's news on Brexit. Support for risky assets continues to provide good reports on the European economy, which is not the case for US data.

US inflation was weak. The only positive thing was yesterday's report on construction costs, which rose sharply in the United States in January. According to a report by the US Department of Commerce, construction spending in January rose by 1.3% compared with the previous month and amounted to $ 1.28 trillion per year. Economists had expected spending to rise by 0.5%. Compared with the same period last year, construction costs in January increased by 0.3%.