Sterling Softens As More Brexit Votes Loom
Faizan Hashmi 20 days ago Tue 22nd October 2019 | 10:45 PM
The pound slipped Tuesday awaiting key votes on Prime Minister Boris Johnson's EU withdrawal bill, but analysts said its downside was capped by broad optimism that a no-deal Brexit will be avoided
- 'Fool's errand' - But it was also obvious that traders were largely flying blind, with political proceedings difficult to call.
"If the whole Brexit process has taught us anything it is that trying to predict the next political development is something of a fool's errand," he said.
Secondly, he hopes the lower House of Commons will vote in favour of a speedy timescale to pass the entire legislation in just three days.
Even if the withdrawal bill "passes there's a fair chance that a vote on the timetable shortly afterwards will fail", said XTB analyst David Cheetham "Several MPs have already voiced their displeasure at the lack of time to scrutinise the bill," he added.
Foreign exchange traders mostly ignored Johnson's last-minute warning to MPs that if they vote against the timetable to push his EU divorce deal through parliament this week he will abandon the legislation.
Global stock markets meanwhile received some support from easing trade war concerns amid "growing expectations that the US and China may finally clinch a partial deal at next month's APEC meeting in Chile", said Ipek Ozkardeskaya at London Capital Group.
US President Donald Trump reinforced hopes Monday that he and Chinese counterpart Xi Jinping will be able to put pen to paper on a mini pact, saying China had already started promised purchases of farm goods, and that the first part of a wider commitment was almost complete.
- Key figures around 1540 GMT - Pound/dollar: DOWN at $1.2930 from $1.2960 at 2100 GMT on Monday Euro/pound: UP at 86.06 pence from 86.03 pence Euro/dollar: DOWN at $1.1134 from $1.1150 Dollar/yen: DOWN at 108.55 Yen from 108.62 yen London - FTSE 100: UP 0.7 percent at 7,212.49 points (close) Paris - CAC 40: UP 0.2 percent at at 5,657.69 (close) Frankfurt - DAX 30: UP 0.1 percent at 12,754.69 (close) EURO STOXX 50: UP 0.1 percent at 3,604.82 New York - Dow: UP 0.2 percent at 26,882.32 Hong Kong - Hang Seng: UP 0.2 percent at 26,786.20 (close) Shanghai - Composite: UP 0.5 percent at 2,954.38 (close) Tokyo - Nikkei 225: Closed for a holidayBrent North Sea crude: UP 1.7 percent at $59.96 per barrelWest Texas Intermediate: UP 1.8 percent at $54.45