The UK Parliament Rejected Brexit Agreement

March 13, 2019

by JustForex

The British pound was under pressure after the Brexit vote in the UK Parliament. So, the House of Commons did not support again the Brexit deal offered by Theresa May. 391 members of Parliament spoke against the deal, 242 supported. Today, a new vote on the no-deal Brexit is to be held. If lawmakers vote against it, then on Thursday a vote on the Brexit delay will be held.

According to most economists, the “tough” Brexit will cause significant damage to the country’s economy. Pound has recovered some of the losses during early London trading session on Wednesday. Most financial market participants expect British lawmakers to vote against no-deal Brexit. Pound is additionally supported by positive economic data from the UK. Thus, manufacturing production increased by 0.8% in January instead of the forecasted growth by 0.2%. Monthly GDP (3m/3m) also showed growth by 0.5% instead of 0.2%.

The US dollar weakened against a basket of major currencies after the publication of weak economic data. Thus, the core consumer price index rose only by 0.1% in February, while experts expected growth by 0.2%. The dollar index (#DX) closed the trading session in the negative zone (-0.28%). Today, investors also expect the publication of important economic data from the US.

The “black gold” prices are rising after the publication of the API data on the reduction of stocks in the US. At the moment, futures for the WTI crude oil have approached $57.25 per barrel. At 16:30 (GMT+2:00), a report on the EIA crude oil inventories will be published in the US.


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Market Indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (+0.38%), #DIA (-0.35%), #QQQ (+0.55%).

The 10-year US government bonds yield has been declining. Currently, the indicator is at the level of 2.61-2.62%.

The news feed on 13.03.2019:

– Preliminary data on the annual budget in the UK at 14:30 (GMT+2:00);
– Statistics on durable goods orders in the US at 14:30 (GMT+2:00);
– Producer price index in the US at 14:30 (GMT+2:00).

We recommend closely following further development on the Brexit issue.

by JustForex