Sterling spacedives on reports May may be nearing Brexit deal ahead of vote

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Sterling spacedives on reports May may be nearing Brexit deal ahead of vote

On Monday, the 11th of March 2019, the British Currency rose sharply over a volatile trade, after a BBC report said that the PM May might have been preparing an amended version of her divorce deal for UK House of Commons ahead of a critical Brexit vote on Tuesday (March 12th).

According to BBC’s political editor, Laura Kuenssberg, senior Brexit supporters of PM May’s Conservative Party believes that the PM would have “some kind of” Brexit deal to offer in the parliament.

Over-optimism of securing a divorce deal before EU Commission’s Brexit deadline of March 29th, investors strengthened their bets over a stronger Sterling minutes after the media report and it had hit a daily high of $.1375 during the late European trading session after remained almost dithered in the Asia-Pacific and early European trading hours.

In fact, as investors had been betting on Brexit vote as a dominant determinant for Sterling directives, Pound closed the day 1.03 percent higher at $1.3147 after falling as much as 1.4 percent to $1.2960 earlier. Citing signs of movement from Brussels and London, an FX strategy head at WorldFirst, Jeremy Cook said, “We are starting to see some signs of movement from London and Brussels towards a Brexit deal and that is helping sentiment”.

While investors had been bracing for parliamentary votes on PM May’s amended Brexit deal, sterling opened Tuesday’s (March 12th) market higher, testing closer to 1.33 region over the early Asian trading hours, and another volatile day ahead of Brexit vote would likely to move the range-bound British Currency between 1.30-1.34 region, as yesterday had already experienced a havoc-scale sideway move exceeding 300 pips a day.