Extreme volatility continues in sterling. Won’t any politicians think about the cable traders?
- Massive Whipsaw is continuing in pound as good and bad news on Brexit continue to hit the markets through the week as the deadline looms closer.
- On Monday, there was a deal, since European Commission Chief Jean Claude Juncker had something significant to offer at his meeting with UK Prime Minister Theresa May at Strasberg. Sterling rose from 1.295 to 1.33 against the USD.
- On Tuesday, UK Attorney General told MPs in parliament that this new offering changes nothing legally and the risk of backstop becoming permanent remains. The pound dropped from 1.329 to 1.3 area.
- On Wednesday, as it became clear that the members of the parliament would reject a no deal Brexit, the pound rose from 1.306 to 1.334 area. It tested the February peak on Wednesday.
- Today, the peak area was retested and as the pound failed to break higher, it has declined to as low as 1.32 against the USD.
Today’s Brexit update:
- A cross-party amendment could be tabled for voting today to legislate for indicative votes to take place next week. Indicatives votes will be held on several Brexit options such as a second referendum or a softer Brexit deal. The amendment is likely to pass at today’s meeting since it is a cross-party effort.
- Prime Minister May’s coalition partner DUP Party cleared that tweaked agreement won’t receive support from DUP lawmakers until serious legal changes are made with regard to Irish backstop and border between two Irelands.
- Prime Minister May will hold a cabinet meeting around 13:30 GMT.


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