14.03.2019: Europe – Have GBP and EUR done their best? (GBP, USD, EUR)
The news broke that the Parliament did not approve a no-deal Brexit.
This option of the UK’s exit from the Euro Union would not be called “hard”, if it did not bring negative consequences. Therefore, the decision of UK parliament members to look for a softer way out is fully justified.
Such prudence encouraged the pound to conquer new highs. The pound/dollar pair reached its June maximums around 1.3360. Although, this was just the first reaction of the market. Today purchase trades are being closed with take profit orders, so the pair is likely to return to its previous positions.
Another vote regarding the postponement of Brexit is due today at the Palace of Westminster. Experts anticipate the votes supporting the shift of the deadline to prevail. Notably, this delay will not help the parties to find a compromise, it can only give them more time, UK Prime Minister Theresa May reminded lawmakers yesterday. The information leaked today that Mrs May had been negotiating secretly with the deal’s opponents urging them to accept Brussels’ terms. As for the long-term outlook, investors share the bearish sentiment towards the pound. Yet, they abstain from opening new deals as trading remains highly volatile.
The euro/dollar pair also retreats after it had peaked. The trading instrument is going back to 1.1300. Apart of take profit orders, buy deals on the euro are being closed amid the weak statistical data as well.
Thus, the final consumer inflation data was released in Germany today. The reading undershot the preliminary estimate of 1.6% and turned out to be only 1.5%.
The eurozone’s final reports are due tomorrow. However, there are concerns that they will also be not as good as the preliminary data.
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