Cable falls as PM May gets new mandate to renegotiate with the EU

The British pound fell after UK Parliament passed both the Spellman amendment, which ceremoniously rejects a no-deal Brexit and the Brady amendment, which calls for the planned Irish backstop to be replace by alternative arrangements.  Immediately following the vote, Labour leader Jeremy Corbyn announced he is ready to meet with the Prime Minister.

The EU has been clear that they will not support the Brady and amendment and the only progress that was made is that the PM now needs to pack her bags and go to renegotiate a new deal with Brussels.  An EU spokesman immediately commented that the bloc is ready to consider a Brexit delay.

Cable fell 0.7% following the UK fireworks and tentatively found support around the 200-day SMA, which currently trades at the 1.3049 level.  While a no-deal Brexit could still happen, the market reaction shows that they are still do not believe that it actual will.

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Ed Moya

Ed Moya

Senior Market Analyst at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏
Ed Moya