FxWirePro: Pound bulls in charge ahead of ‘no-deal’ vote

Pound bulls remain in charge,

• Before tonight’s voting at the UK Parliament, the bulls have seized control from the bears after yesterday’s massive gyrations on both sides, as traders remain confident that the lawmakers would vote to avoid a no-deal scenario.
• Tonight, members of the parliament would vote at 7:00 GMT on whether the UK should crash out of the EU without an agreement. It is widely expected that the lawmakers would vote to avoid a ‘no-deal’ scenario and would call for an extension of the Brexit deadline, so that, the negotiations could proceed further.

Fundamentally speaking,

• The majority of the possible outcomes remain positive for the pound. While a no-deal scenario is extremely negative, an extension of the deadline, customs union agreement, avoiding a no-deal scenario - all remains positive for the pound.

Positive outcomes in the Brexit negotiations could easily propel pound to as high as 1.356 against USD.