Asia Pacific Market Open Talking Points
- GBP/USD[1] climbs, the UK Parliament backs bill to block ‘no-deal’ Brexit
- Canadian Dollar[2] fell alongside a decline in crude oil[3] prices, AUD/USD[4] up
- FX markets look to risk trends in Thursday’s Asia Pacific trading session
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GBP/USD Climbs as UK Parliament Blocks No Deal Brexit
The British Pound[6] firmed in early Thursday trade after the UK parliament voted and passed a bill to block a ‘no-deal’ Brexit. The measure, which passed by just one vote, seeks to push back the already-extended April 12th divorce deadline should the government fail to secure a withdrawal agreement. This does mean that UK Prime Minister Theresa May will have to head back to the European Union to discuss it.
Earlier in the day, Sterling was trading sideways as Ms May reportedly had ‘constructive’ talks with opposition leader Jeremy Corbyn. The currency initially rallied on prospects of coordination between the two[7]. From here, the bill heads to the House of Lords where it must be approved there. Newswires suggest that it will be voted on later today.
GBP/USD Technical Analysis
There wasn’t enough upside momentum from the Brexit developments to help GBP/USD clear near-term descending resistance on the chart below. It is however approaching the outer boundary of the psychological area. A breakout to the upside would open the door to testing 1.3301 thereafter. A turn lower on the other hand exposes support just above 1.3012.
