Forex - Pound Falls as Commons Reject Timetable
23/10/2019 04:10:53 Forex
The British pound after the government was defeated in a vote on the timetable for Brexit, diminishing the possibility of the U.K. leaving the EU before the end of this month. The GBP/USD pair fell 0.2% to 1.2847 by 12:06 AM ET (04:06 GMT). With no major event and economic data scheduled in Asia today, traders focused on news in the U.K. as lawmakers rejected Prime Minister Boris Johnson’s plan to fast-track his Brexit deal through parliament. “For now it seems the market is still generally expecting this is a setback, but not a fatal setback, to a negotiated Brexit,” said Jeremy Stretch, head of G-10 currency strategy at Canadian Imperial Bank of Commerce, in a Reuters report. “There hasn’t been a rapid uptick in no-deal pricing at this point.” While the vote means that it is almost impossible for Johnson to get his deal ratified by next week, the risk of a no-deal scenrio was also largely neutralized as the government had earlier won a first vote on the deal legislation to progress. Traders also continued monitoring situation on the Sino-U.S. trade front, although no major news are expected before officials from the two nations meet at the Asia-Pacific Economic Cooperation summit in Chile in mid-November. Reports have suggested that Trump and his Chinese counterpart Xi Jinping might sign the first phase of a trade agreement at the summit. The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.1% to 97.328. The USD/CNY pair climbed 0.1% to 7.0842. The AUD/USD pair and the NZD/USD pair were both down 0.2%. The USD/JPY pair also dropped 0.2% to 108.28.