Sterling snaps below key support level, as Brexit votes delayed

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Sterling snaps below key support level, as Brexit votes delayed

Sterling was throbbing hard on delayed Brexit votes and it is harboring near 20-months low, breaking all initial support levels, just above 1.2500. As political turmoil had been deepened in the British soil on the delaying of Brexit vote by UK PM Theresa May, US shares had staged a late rally and indicated a positive signal for Asian Stocks.

On Monday, December 10th, the UK PM Theresa May had abruptly postponed the Brexit vote due to be held on December 11th, Tuesday. It has been a critical yet, pivotal move for her career, as the Brexit draft would not make it through the House of Commons and might result in a no-Brexit and remerging possibilities of another no-confidence vote.

This, appeared-to-be-sagacious move from UK PM had simply jolted the British pounds in to 1.2500s, losing over 250 pips in a session, and the market had experienced GBP’s largest nose-dive in a day in 2018. The gregarious Great Britain Pound had been hovering over 1.2770, keeping its key support level at 1.2662 with cautious cushioning, yesterday.

All on a sudden, the news of delayed Brexit vote dragged down the GBP in to the 1.2500s, breaking almost all of its key support level. Concomitantly, there had been disappointing data from major economies including Japan and China, that sputtered further worries about global-scale economic activities, while US stocks were gaining and the American dollars were rushing over 96.60.