British Parliament vote boosted the pound

The British Parliament voted NO for a no-deal Brexit. With surprisingly strong economic data, the pound received positive boost

According to new legislative, the Prime minister Boris Johnson is obliged to request EU for another delay for Brexit (three months), if the transition deal is not reached till 19 October or if he does not encourage the British Parliament to leave EU without an agreement. The possibility of no-deal Brexit is significantly reduced. However, there is still a big concern whether the EU will agree with another delay for Britain.

Against the euro, the pound strengthened by 0,25 % to EUR/GBP 89.48. Versus the dollar, the pound rose also by 0,25 % to GBP/USD 1.2321.

 If a Brexit is delayed until January 2020, the pound could touch GBP/USD 1.30. If a Brexit transition deal with the EU is reached, the pound could reach its high from May 2018 of GBP/USD 1.35, according to analysts.


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